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The specification of dynamic discrete-time two-state panel data models

This paper compares two approaches to analyzing longitudinal discrete-time binary outcomes. Dynamic binary response models focus on state occupancy and typically specify low-order Markovian state dependence. Multi-spell duration models focus on transitions between states and typically allow for state-specific duration dependence. We show that the former implicitly impose strong and testable restrictions on the transition probabilities. In a case study of poverty transitions, we show that these restrictions are severely rejected against the more flexible multi-spell duration models.
Year of publication:
2019
Authors: Gørgens, Tue ; Hyslop, Dean Robert
Published in:
Econometrics. - Basel : MDPI, ISSN 2225-1146. - Vol. 7.2019, 1, p. 1-16
Publisher: Basel : MDPI
Subject: panel data | transition data | binary response | duration analysis | event history analysis | dynamic models | censored data | initial conditions | random effects
Type of publication: Article
Type of publication (narrower categories): Article
Language: English
Other identifiers:
10.3390/econometrics7010001 [DOI]
1668934493 [GVK]
hdl:10419/247502 [Handle]
Classification: C33 - Models with Panel Data ; C35 - Discrete Regression and Qualitative Choice Models ; C41 - Duration Analysis ; C51 - Model Construction and Estimation
Source:
Persistent link: https://ebvufind01.dmz1.zbw.eu/10012696217
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