Continuous outcomes stochastically mismeasured as discrete random variables: a maximum likelihood approach |
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Authors: | JS Butler Kathryn H Anderson |
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Institution: | Department of Economics and Business Administration , Vanderbilt University , Nashville , TN , 37235 , USA |
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Abstract: | In an economic model of retirement behavior, a continuous dependent variable was required; the variable could only be estimated discretely with error, however. Parameter estimates using this dependent variable and ordinary least squares regression are inefficient. In th is paper, we develop a maximum likelihood procedure which adjusts for this heteroscedasticity. |
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Keywords: | maximum likelihood discretely measured dependent variables heteroscedastic residuals retirement: behavior |
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