Feenstra and Hanson [NBER Working Paper No. 6052 (1997)] propose a procedure to correct the standard errors in a two-stage regression with generated dependent variables. Their method has subsequently been used in two-stage mandated wage models [Feenstra and Hanson, Quarterly Journal of Economics...

In this paper we investigate the effect of presmoothing on model selection. ChristobalChristobal et al. (1987) showed the beneficial effect of presmoothing for estimating the parameters in a linear regression model. Here, in a regression setting, we show that smoothing the response data prior to...

In this review, we give a general overview of latent variable models. We introduce the general model and discuss various inferential approaches. Afterward, we present several commonly applied special cases, including mixture or latent class models, as well as mixed models. We apply many of these...