Non-linear and Limited Dependent Regression
There is no guarantee that the relationship between the dependent and independent variables will be linear. On many occasions we may find the relationship to have considerable non-linearity. In such circumstances, we might attempt to use polynomial regression, logarithmic regression, exponential regression, or a more general non-linear model. This chapter introduces these models. It also discusses the use of limited dependent regression models.
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- Berndt, E., Hall, B., Hall, R., and Hausman, J. (1974) “Estimation and inference in nonlinear structural models,” Annals of Economic and Social Measurement, 3: 653–65.Google Scholar