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st: Fractional Response Model with Dynamic Component


From   Anna-Leigh Stone <[email protected]>
To   statalist <[email protected]>
Subject   st: Fractional Response Model with Dynamic Component
Date   Mon, 12 Nov 2012 15:50:33 -0600

Hello Statalist,

I am interested in using the Papke and Wooldridge (2008) fractional
response model. I have a dependent variable that lies within the zero
and one range for the dependent variable with values that lie at zero
but not one. However, the model will not converge without a dynamic
component added in. I am using quarterly data so that there is a need
for lagged values of the dependent variable. I know that Loudermilk
(2007) added in a dynamic component into the Tobit model. Is there an
appropriate way to add in a dynamic component into the fractional
response model?

Thank you for any help you can provide,

Anna-Leigh



--
Anna-Leigh Stone
Finance PHD Candidate 2014
MA/EC 2011
MSF 2010
[email protected]
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