* Linear Probability Model for Debit Card Ownership * * Keywords: * regression, heteroskedasticity, probability, debit card, ownership * * Description: * We illustrate how to estimate a Linear Probability Model for Debit * Card Ownership and apply a heteroskedasticity correction * * Author(s): * Skif Pankov * * Source: * Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition * McGraw-Hill International Edition, Chapter 15, Example 15.4 (page 552) * sample 1 60 * Reading the datafile and naming variables read (data_15.4.shd) deb bal atm i * Running an OLS regression of deb on balm atm and i ols deb bal atm i * Running an OLS regression of deb on bal, atm and i, specifying to use White's * heteroskedasticity-consistent covariance matrix ols deb bal atm i / hetcov stop * Note: * Authors did not specify how they have corrected for heteroskedasticity * in this example, which is why the standard errros of coefficients in * the second regression will differ from those in the book