A Note on Additive Separability and Latent Index Models of Binary Choice: Representation Results*

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 2006
Volume: 68
Issue: 4
Pages: 515-518

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The standard binary choice model in econometrics has the choice determined by a latent index crossing a threshold. The latent index is almost always assumed to be additively separable in observable and unobservable regressors, and most commonly linear in all regressors. This note provides a class of non‐separable latent index functions which will have equivalent representations as additively separable or linear index functions. These results demonstrate that assuming a linear or additively separable latent index function is less restrictive than previously recognized.

Technical Details

RePEc Handle
repec:bla:obuest:v:68:y:2006:i:4:p:515-518
Journal Field
General
Author Count
1
Added to Database
2026-01-29