Jochmans, K. and Magnac, T.

A Note on Sufficiency in Binary Panel Models

Econometrics Journal

Vol. 20(2) pp. 259-269 (2017)

Abstract: Consider estimating the slope coefficients of a fixed‐effect binary‐choice model from two‐period panel data. Two approaches to semiparametric estimation at the regular parametric rate have been proposed: one is based on a sufficiency requirement, and the other is based on a conditional‐median restriction. We show that, under standard assumptions, both conditions are equivalent.

Keywords: Binary choice, Fixed effects, Panel data, Regular estimation, Sufficiency

Author links:

Publisher's Link: https://doi.org/10.1111/ectj.12091