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Archivio digitale delle tesi discusse presso l’Università di Pisa

Tesi etd-02062023-170826


Tipo di tesi
Tesi di laurea magistrale
Autore
BECI, ANDREA
URN
etd-02062023-170826
Titolo
An R package for constrained estimation of the linear probability model
Dipartimento
ECONOMIA E MANAGEMENT
Corso di studi
ECONOMICS
Relatori
relatore Prof. Frumento, Paolo
Parole chiave
  • econometrics
  • linear probability model
  • R
Data inizio appello
27/02/2023
Consultabilità
Completa
Riassunto
The linear regression model is one of the most used tool not only in econometrics, but
in many other fields. The reason for this comes from its simplicity of estimation and
interpretation. However, there are situations in which this model does not appear
as the most natural choice. One of such situations is when the dependent variable is
binary. This thesis elaborates a method for estimation of the so-called linear proba-
bility model, implementing an algorithm to constrain the predicted probabilities to
be inside the (0,1) interval. This allows to extend the applicability of linear regres-
sion in a situation which is usually handled by logit or probit models that, however,
do not have a straightforward interpretation. The theoretical framework has been
implemented in an R package lpm.
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