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Semiparametric Binary Random Effects Models: Estimating Two Types of Drinking Behavior

Dong, Yingying (2010): Semiparametric Binary Random Effects Models: Estimating Two Types of Drinking Behavior.

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Abstract

This paper proposes a new estimator for cross section semiparametric regressions containing an unobserved binary random effect and applies it to alcohol consumption. The unobserved random effect (health-consciousness) explains a significant proportion of the otherwise unexplained variation in alcohol consumption. Higher education positively correlates with health-consciousness.

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