Estimating features of a distribution from binomial data

Arthur Lewbel, Daniel McFadden, Oliver Linton

Research output: Contribution to journalArticleResearchpeer-review

19 Citations (Scopus)

Abstract

We propose estimators of features of the distribution of an unobserved random variable W. What is observed is a sample of Y,V,X where a binary Y equals one when W exceeds a threshold V determined by experimental design, and X are covariates. Potential applications include bioassay and destructive duration analysis. Our empirical application is referendum contingent valuation in resource economics, where one is interested in features of the distribution of values W (willingness to pay) placed by consumers on a public good such as endangered species. Sample consumers with characteristics X are asked whether they favor (with Y=1 if yes and zero otherwise) a referendum that would provide the good at a cost V specified by experimental design. This paper provides estimators for quantiles and conditional on X moments of W under both nonparametric and semiparametric specifications.

Original languageEnglish
Pages (from-to)170-188
Number of pages19
JournalJournal of Econometrics
Volume162
Issue number2
DOIs
Publication statusPublished - Jun 2011
Externally publishedYes

Keywords

  • Binomial response
  • Bioassay
  • Contingent valuation
  • Destructive duration testing
  • Discrete choice
  • Latent variable models
  • Nonparametric
  • Semiparametric
  • Willingness to pay

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