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Modelling limited dependent variables: methods and guidelines for researchers in strategic management
Bowen, Harry Wiersema, Margarethe
Bowen, Harry
Wiersema, Margarethe
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Publication Type
Working paper
Editor
Supervisor
Publication Year
2003
Journal
Book
Publication Volume
Publication Issue
30
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Publication End page
Publication Number of pages
56
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Abstract
Research on strategic choices available to the firm are often modeled as a limited number of possible decision outcomes and leads to a discrete limited dependent variable. A limited dependent variable can also arise when values of a continuous dependent variable are partially or wholly unobserved. This chapter discusses the methodological issues associated with such phenomena and the appropriate statistical methods developed to allow for consistent and efficient estimation of models that involve a limited dependent variable. The chapter also provides a road map for selecting the appropriate statistical technique and it offers guidelines for consistent interpretation and reporting of the statistical results.
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Strategic Management