Bartlomiej,
You want to use Arellano-Bond procedure because in theory
you have a model like this (basic one)
y(i,t) = b*y(i,t-1) + a(i) +e(i,t)
a(i) is an unobservable cross-sectional unit effect. OK?
So far, I don't think there will be a serious problem to estimate
your dynamic binary model with -probit- or -logit- procedures.
But becomes more complicated if you have a(i) in your model.
The solutions that I know are: -xtlogit- (fixed or random effects),
-xtprobit- (random effect) or -logit/probit- with dummies.
Rodrigo.
----- Original Message -----
From: "Bartlomiej Wojcik" <[email protected]>
To: <[email protected]>
Sent: Saturday, August 19, 2006 7:14 PM
Subject: st: xtabond
dear stata users
my question is as follows. is xtabond procedure adequate for binary
response variable? if not, then how can I model dynamic model with
discrete dependent variable?
kind regards
b.wojcik
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