An Overview of the Special Regressor Method

Lewbel, Arthur

doi:10.1093/oxfordhb/9780199857944.013.002

Cited by 5 publications

(5 citation statements)

References 48 publications

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“…However, this result is not sufficient to revert to the baseline probit model because, although the control function approach accounts for the endogenous regressor, it is not appropriate for non-linear models and when the endogenous regressor is discrete [39]. Therefore, we proceed to use the special regressor method estimation [40,41] to counter any possible bias due to the binary nature of both our dependent variable as well as the endogenous regressor. In order to estimate the special regressor model, a special regressor (V) satisfying the assumption conditions that a) it is continuously distributed and has a large support; b) it is exogenous; and c) it is conditionally independent of the model error term.…”

Section: Behavioural Changementioning

confidence: 99%

Behavioural response to the Covid-19 pandemic in South Africa

Kollamparambil

Oyenubi

2021

PLoS ONE

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Background Given the economic and social divide that exists in South Africa, it is critical to manage the health response of its residents to the Covid-19 pandemic within the different socio-economic contexts that define the lived realities of individuals. Objective The objective of this study is to analyse the Covid-19 preventive behaviour and the socio-economic drivers behind the health-response behaviour. Data The study employs data from waves 1 and 2 of South Africa’s nationally representative National Income Dynamics Study (NIDS)—Coronavirus Rapid Mobile Survey (CRAM). The nationally representative panel data has a sample of 7073 individuals in Wave 1 and 5676 individuals in Wave 2. Methods The study uses bivariate statistics, concentration indices and multivariate estimation techniques, ranging from a probit, control-function approach, special-regressor method and seemingly unrelated regression to account for endogeneity while identifying the drivers of the response behaviour. Findings The findings indicate enhanced behavioural responsiveness to Covid-19. Preventive behaviour is evolving over time; the use of face mask has overtaken handwashing as the most utilised preventive measure. Other measures, like social distancing, avoiding close contact, avoiding big groups and staying at home, have declined between the two periods of the study. There is increased risk perception with significant concentration among the higher income groups, the educated and older respondents. Our findings validate the health-belief model, with perceived risk, self-efficacy, perceived awareness and barriers to preventive strategy adoption identified as significant drivers of health-response behaviour. Measures such as social distancing, avoiding close contact, and the use of sanitisers are practised more by the rich and educated, but not by the low-income respondents. Conclusion The respondents from lower socio-economic backgrounds are associated with optimism bias and face barriers to the adoption of preventive strategies. This requires targeted policy attention in order to make response behaviour effective.

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Section: Behavioural Changementioning

confidence: 99%

Behavioural response to the Covid-19 pandemic in South Africa

Kollamparambil

Oyenubi

2021

PLoS ONE

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“…This variable is the outcome for the OLS regression. Lewbel (2014) shows that this expected value of ! !"…”

Section: Web Appendixmentioning

confidence: 84%

“…To assess the robustness of our findings to assuming a specific distribution for the error term, we use the so-called special regressor estimator which does not require distributional assumptions on the error term and estimates mean valuations even in the presence of random coefficients (Dong and Lewbel, 2015;Lewbel, 2014). This approach has been used previously in estimating willingness-to-pay parameters (e.g., Kalisa et al, 2016;Bontemps and Nauges, 2015;Agarwal and Somaini, 2014).…”

Section: D Robustness To Assumption Of Extreme Value Distribution (Sp...mentioning

confidence: 99%

The Value of Working Conditions in the United States and Implications for the Structure of Wages

Maestas

Mullen

Powell

et al. 2023

American Economic Review

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We document variation in working conditions in the United States, present estimates of how workers value these conditions, and assess the impact of working conditions on estimates of wage inequality. We conduct a series of stated-preference experiments to estimate workers’ willingness to pay for a broad set of working conditions, which we validate with actual job choices. We find that working conditions vary substantially, play a significant role in job choice, and are central components of the compensation received by workers. We find that accounting for differences in preferences for working conditions often exacerbates wage differentials and intensifies measures of wage inequality. (JEL J22, J28, J31, J81)

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“…55 See the review by Lewbel (2014) and references therein. A very early version of this paper (Berry and Haile (2010)) featured an example of such an approach.…”

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confidence: 99%

Nonparametric Identification of Differentiated Products Demand Using Micro Data

Berry,

Haile

2024

ECTA

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We examine identification of differentiated products demand when one has “micro data” linking the characteristics and choices of individual consumers. Our model nests standard specifications featuring rich observed and unobserved consumer heterogeneity as well as product/market‐level unobservables that introduce the problem of econometric endogeneity. Previous work establishes identification of such models using market‐level data and instruments for all prices and quantities. Micro data provides a panel structure that facilitates richer demand specifications and reduces requirements on both the number and types of instrumental variables. We address identification of demand in the standard case in which nonprice product characteristics are assumed exogenous, but also cover identification of demand elasticities and other key features when these product characteristics are endogenous and not instrumented. We discuss implications of these results for applied work.

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An Overview of the Special Regressor Method

Abstract: This chapter provides background for understanding and applying special regressor methods.

Cited by 5 publications

References 48 publications

Behavioural response to the Covid-19 pandemic in South Africa

Behavioural response to the Covid-19 pandemic in South Africa

The Value of Working Conditions in the United States and Implications for the Structure of Wages

Nonparametric Identification of Differentiated Products Demand Using Micro Data

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