Empirical work regarding the impact of environmental regulations on firm behavior has been developed under the assumption that emissions of pollutants are deterministic. The implication is that the regulation is effective only when the constraint is exactly satisfied. In real life, however, it...

This paper is concerned with the estimation of the binary choice model without imposing any parametric structure on the distribution of the stochastic term. We adapt the distribution-free maximum likelihood method developed by Cosslett (1983) for deriving the contingent value function with...