QUALITATIVE RESPONSE MODELS:A SURVEY OF METHODOLOGY AND ILLUSTRATIVE APPLICATIONS

Abstract

This paper introduces econometric modelling with discrete (categorical) dependent variables. Such models, commonly referred to as qualitative response (QR) models, have become a standard tool of microeconometric analysis. Microeconometric research represents empirical analysis of microdata, i.e. economic information about individuals, households and firms. Microeconometrics has been most widely adopted in various fields, such as labour economics, consumer behaviour, or economy of transport. The latest research shows that this methodology can also be successfully transferred to macroeconomic context and applied to time series and panel data analysis in a wider scope.