Probit and logit models typically require a normalization on the error variance for model identification. This paper shows that in the context of sample mean probability decompositions, error variance normalizations preclude estimation of the effects of group differences in the latent variable...

The conditions under which ordinary least squares (OLS) is an unbiased and consistent estimator of the linear probability model (LPM) are unlikely to hold in many instances. Yet the LPM still may be the correct model or a good approximation to the probability generating process. A sequential...

Experiments with human subjects have been widely used to test hypotheses derived from economic theory and to provide stylized facts about empirical regularities in economics. One of the clear implications of experimental economics is that the efficiency and distributional properties of market...