Results on the bias and inconsistency of ordinary least squares for the linear probability model

William C. Horrace; Ronald L. Oaxaca

doi:10.1016/j.econlet.2005.08.024

Results on the bias and inconsistency of ordinary least squares for the linear probability model

William C. Horrace, Ronald L. Oaxaca

Department of Economics

Research output: Contribution to journal › Article › peer-review

292 Scopus citations

Abstract

This note formalizes bias and inconsistency results for ordinary least squares (OLS) on the linear probability model and provides sufficient conditions for unbiasedness and consistency to hold. The conditions suggest that a "trimming estimator" may reduce OLS bias.

Original language	English (US)
Pages (from-to)	321-327
Number of pages	7
Journal	Economics Letters
Volume	90
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2005.08.024
State	Published - Mar 2006

Keywords

Consistency
LPM
OLS
Unbiased

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2005.08.024

Cite this

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title = "Results on the bias and inconsistency of ordinary least squares for the linear probability model",

abstract = "This note formalizes bias and inconsistency results for ordinary least squares (OLS) on the linear probability model and provides sufficient conditions for unbiasedness and consistency to hold. The conditions suggest that a {"}trimming estimator{"} may reduce OLS bias.",

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year = "2006",

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KW - LPM

KW - OLS

KW - Unbiased

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JO - Economics Letters

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Results on the bias and inconsistency of ordinary least squares for the linear probability model

Abstract

Keywords

ASJC Scopus subject areas

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