Is neglected heterogeneity really an issue in binary and fractional regression models? A simulation exercise for logit, probit and loglog models

In this paper we examine theoretically and by simulation whether or not unobserved heterogeneity independent of the included regressors is really an issue in logit, probit and loglog models with both binary and fractional data. We found that unobserved heterogeneity: (i) produces an attenuation bias in the estimation of regression coefficients; (ii) is innocuous for logit estimation of average sample partial effects, while in the probit and loglog cases there may be important biases in the estimation of those quantities; (iii) has much more destructive effects over the estimation of population partial effects; (iv) only for logit models does not affect substantially the prediction of outcomes; and (v) is innocuous for the size and consistency of Wald tests for the significance of observed regressors but, in small samples, reduces their power substantially.Binary models; fractional models; neglected heterogeneity; partial effects; prediction; wald tests.

Nonparametric models of financial leverage decisions

This paper investigates the properties of nonparametric decision tree models in the analysis of financial leverage decisions. This approach presents two appealing features: the relationship between leverage ratios and the explanatory variables is not predetermined but is derived according to information provided by the data, and the models respect the bounded and fractional nature of leverage ratios. The analysis shows that tree models suggest relationships between explanatory variables and the relative amount of issued debt that parametric models fail to capture. Furthermore, the significant relationships found by tree models are in most cases in accordance with the effects predicted by the pecking-order theory. The results also show that two-part tree models can accommodate better the distinct effects of explanatory variables on the decision to issue debt and on the amount of debt issued by firms that do resort to debt.Capital structure, Fractional regression, Decision trees, Two-part models

Moment-based estimation of nonlinear regression models with boundary outcomes and endogeneity, with applications to nonnegative and fractional responses

In this article, we suggest simple moment-based estimators to deal with unobserved heterogeneity in a special class of nonlinear regression models that includes as main particular cases exponential models for nonnegative responses and logit and complementary loglog models for fractional responses. The proposed estimators: (i) treat observed and omitted covariates in a similar manner; (ii) can deal with boundary outcomes; (iii) accommodate endogenous explanatory variables without requiring knowledge on the reduced form model, although such information may be easily incorporated in the estimation process; (iv) do not require distributional assumptions on the unobservables, a conditional mean assumption being enough forconsistentestimationofthestructuralparameters;and(v)undertheadditionalassumption that the dependence between observables and unobservables is restricted to the conditional mean, produce consistent estimators of partial effects conditional only on observables.info:eu-repo/semantics/publishedVersio

Combining micro and macro data in hedonic price indexes

This paper proposes arithmetic and geometric Paasche quality-adjusted price indexes that combine micro data from the base period with macro data on the averages of asset prices and characteristics at the index period. The suggested indexes have two types of advantages relative to traditional Paasche indexes: (i) simplification and cost reduction of data acquisition and manipulation; and (ii) potentially greater efficiency and robustness to sampling problems. A Monte Carlo simulation study and an empirical application concerning the housing market illustrate some of those advantages.info:eu-repo/semantics/publishedVersio

Behavior of sorghum lines in relation to sugarcane borer Diatraea sacchardis (Fabricius, 1974).

Sorghum lines were evaluated for resistance to the sugarcane borer (Diatraea saccharalist) at the Afranio Research Field, Pernambuco in 1976. The infestations of the lines are given in Table 1. There was significant simple positive correlation between infestation percentage and infestation intensity (r= 0.86*). There was no correlation between infestation percentage and infestation intensity with plant height or with number and external diameter of internodes.E em Annual Plant Resistance Insects Newsletter, v.4, p.38-39, 1978

Octet baryon electromagnetic form factors in nuclear medium

We study the octet baryon electromagnetic form factors in nuclear matter using the covariant spectator quark model extended to the nuclear matter regime. The parameters of the model in vacuum are fixed by the study of the octet baryon electromagnetic form factors. In nuclear matter the changes in hadron properties are calculated by including the relevant hadron masses and the modification of the pion-baryon coupling constants calculated in the quark-meson coupling model. In nuclear matter the magnetic form factors of the octet baryons are enhanced in the low $Q^2$ region, while the electric form factors show a more rapid variation with $Q^2$. The results are compared with the modification of the bound proton electromagnetic form factors observed at Jefferson Lab. In addition, the corresponding changes for the bound neutron are predicted.Comment: Version accepted for publication in J.Phys. G. Few changes. 40 pages, 14 figures and 8 table

Discriminating among the theoretical origins of new heavy Majorana neutrinos at the CERN LHC

A study on the possibility of distinguishing new heavy Majorana neutrino models at LHC energies is presented. The experimental confirmation of standard neutrinos with non-zero mass and the theoretical possibility of lepton number violation find a natural explanation when new heavy Majorana neutrinos exist. These new neutrinos appear in models with new right-handed singlets, in new doublets of some grand unified theories and left-right symmetrical models. It is expected that signals of new particles can be found at the CERN high-energy hadron collider (LHC). We present signatures and distributions that can indicate the theoretical origin of these new particles. The single and pair production of heavy Majorana neutrinos are calculated and the model dependence is discussed. Same-sign dileptons in the final state provide a clear signal for the Majorana nature of heavy neutrinos, since there is lepton number violation. Mass bounds on heavy Majorana neutrinos allowing model discrimination are estimated for three different LHC luminosities.Comment: 7 pages, 5 figure