Article

A Note on Sufficiency in Binary Panel Data Models

Koen Jochmans, and Thierry Magnac

Abstract

Consider estimating the slope coefficients of a fixed-effect binary-choice model from twoperiod panel data. Two approaches to semiparametric estimation at the regular parametric rate have been proposed. One is based on a sufficiency requirement, the other is based on a conditional-median restriction. We show that, under standard assumptions, both conditions are equivalent.

Keywords

binary choice; fixed effects; panel data; regular estimation; sufficiency;

Published in

The Econometrics Journal, 2017, forthcoming