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Modelling limited dependent variables: methods and guidelines for researchers in strategic management

Author

Listed:
  • Harry Bowen
  • Margarethe Wiersema

    (Vlerick Leuven Gent Management School)

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.

Suggested Citation

  • Harry Bowen & Margarethe Wiersema, 2003. "Modelling limited dependent variables: methods and guidelines for researchers in strategic management," Vlerick Leuven Gent Management School Working Paper Series 2003-30, Vlerick Leuven Gent Management School.
    • Handle: RePEc:vlg:vlgwps:2003-30
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    File URL: http://www.vlerick.be/en/2700-VLK/version/default/part/AttachmentData/data/vlgms-wp-2003-30.pdf
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