Alternative Estimating and Testing Empirical Strategies for Fractional Regression Models

Ramalho, Esmeralda A.; Ramalho, Joaquim J.S.; Murteira, José

doi:10.1111/j.1467-6419.2009.00602.x

Cited by 338 publications

(270 citation statements)

References 56 publications

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“…and have already been considered by Ramalho, Ramalho and Murteira (2010) Poirier (1980), Smith (1989) and Nagler (1994). For other generalizations commonly employed with binary models, which can, however, only be applied to specific functional forms, usually the logit, see inter alia Prentice (1976), Pregibon (1980), Aranda-Ordaz (1981), Whitemore (1983), Stukel (1988) and Czado (1994).…”

Section: Generalized Modelsmentioning

confidence: 99%

Fractional regression models for second stage DEA efficiency analyses

2010

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Data envelopment analysis (DEA) is commonly used to measure the relative efficiency of decision-making units. Often, in a second stage, a regression model is estimated to relate DEA efficiency scores to exogenous factors. In this paper, we argue that the traditional linear or tobit approaches to second-stage DEA analysis do not constitute a reasonable data-generating process for DEA scores. Under the assumption that DEA scores can be treated as descriptive measures of the relative performance of units in the sample, we show that using fractional regression models are the most natural way of modeling bounded, proportional response variables such as DEA scores. We also propose generalizations of these models and, given that DEA scores take frequently the value of unity, examine the use of two-part models in this framework. Several tests suitable for assessing the specification of each alternative model are also discussed.

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Section: Generalized Modelsmentioning

confidence: 99%

Fractional regression models for second stage DEA efficiency analyses

2010

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“…Possible extensions have also been recently summarized by Ramalho et al (2011). The authors find that it is not reasonable to assume that the effect of explanatory variables is constant throughout the entire range of the response variable when the latter is bounded.…”

Section: Distributional Specificationmentioning

confidence: 97%

The effect of income on democracy revisited a flexible distributional approach

2017

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We reexamine the effect of economic development on the level of democracy based on the data sets of Acemoglu et al. (2008) with a novel regression specification utilizing a zero-one-inflated beta distribution for the response variable democracy. Contrary to the results of Acemoglu et al. (2008), some support of a positive association between income and democracy is found when assuming that the variance of explanatory variables is heterogenous. In particular, our results show that rising income is associated with a higher probability of becoming fully democratic, but income is not generally associated with the mean level of democracy.

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“…The same holds for the Betafit regression, which assumes the model to follow a Beta distribution. Betafit is flexible in modeling the conditional mean of the dependent variable (Ramalho et al 2011;Wagner 2001) but is not robust to violations of the distributional assumption (Papke and Wooldridge 1996). The Tobit model, finally, also accounts for boundedness of continuous variables but treats them as being censored at zero and one.…”

Section: Regression Methodsmentioning

confidence: 99%