Abstract
In this paper it will be shown that regression models with discrete explanatory variables take the form of a polynominal of a linear function of the regressors. A two-stage estimation procedure and various model specification tests will be developed in close harmony with an empirical application to the earnings function.
Original language | English |
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Pages (from-to) | 269-299 |
Number of pages | 31 |
Journal | Journal of Econometrics |
Volume | 38 |
Issue number | 3 |
DOIs | |
Publication status | Published - Jul 1988 |
Externally published | Yes |