A Control Function Approach to Estimating Dynamic Probit Models with Endogenous Regressors, with an Application to the Study of Poverty Persistence in China
This paper proposes a parametric
approach to estimating a dynamic binary response panel data
model that allows for endogenous contemporaneous regressors.
This approach is of particular value for settings in which
one wants to estimate the effects of an endogenous treatment
on a binary outcome. The model is next used to examine the
impact of rural-urban migration on the likelihood that
households in rural China fall below the poverty line. In