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

William C. Horrace, Ronald L. Oaxaca

Research output: Contribution to journalArticle

158 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 languageEnglish (US)
Pages (from-to)321-327
Number of pages7
JournalEconomics Letters
Volume90
Issue number3
DOIs
StatePublished - Mar 2006

Keywords

  • Consistency
  • LPM
  • OLS
  • Unbiased

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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