Title: Dynamic binary choice panel data model with fixed effect based on transition model
Authors: Takuma Kurosawa - Tokyo University of Science (Japan) [presenting]
Asanao Shimokawa - Tokyo University of Science (Japan)
Etsuo Miyaoka - Tokyo University of Science (Japan)
Abstract: In some medical research, we analyze dynamic binary choice panel data. Handling heterogeneity is one of the important things in considering these data. They are roughly divided into two types: a fixed effect and a random effect. We focus on dynamic binary choice panel data models with fixed effects. If only one lag observation which represent the dynamics is included the model, there are several proposed methods for analyzing the data. However, sometimes we are interested in more complex dynamics such as a model has more than one lag observations. To address this problem, we apply transition model to dynamic binary choice panel data and test efficiency of the model through some simulation studies. Moreover, we show the results of applying the model to actual data.