Lee, Myoung-jae - In: Econometric Reviews 18 (1999) 4, pp. 387-415
quadrant correlation E{sgn(u1) *sgn(u2)} between the two error terms ul and u2 without specifjing the error term distribution …. The quadrant correlation accounts for the relationship between yl and y2 that is not explained by xl and x2, and can be … used in testing for the specification of endogenous dummy variable models. The quadrant correlation is further generalized …