Prediction tests in limited dependent variable models
This paper discusses the problem of assessing the predictive power of a model in the class of limited dependent variable models. The use of dummy variables in this context in standard regression models has been discussed in \textit{D. S. Salkever}, J. Econ. 4, 393-397 (1976; Zbl 0348.62032), however problems emerge if such an approach is taken when the dummy appears in a limit of an integral that has to be evaluated. The paper proposes tests of predictive power which circumvent these problems.
scientific article; zbMATH DE number 4054883
scientific article