Testing for complementarity when strategies are dichotomous

Eugenio J. Miravete; José C. Pernías

doi:10.1016/j.econlet.2009.09.016

Testing for complementarity when strategies are dichotomous

Eugenio J. Miravete, José C. Pernías

Research output: Contribution to journal › Article › peer-review

16 Citations (Scopus)

Abstract

We show that it is not possible to extend Arora (1996) reduced form test for the existence of complementarity to evaluate the relationship between a couple of dichotomous strategies as it leads to an incoherent simultaneous discrete response model.

Original language	English
Pages (from-to)	28-31
Number of pages	4
Journal	Economics Letters
Volume	106
Issue number	1
Early online date	29 Sept 2009
DOIs	https://doi.org/10.1016/j.econlet.2009.09.016
Publication status	Published - Jan 2010

Keywords

Dichotomous strategies
Complementarity
Incoherent models

Access to Document

10.1016/j.econlet.2009.09.016

Cite this

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title = "Testing for complementarity when strategies are dichotomous",

abstract = "We show that it is not possible to extend Arora (1996) reduced form test for the existence of complementarity to evaluate the relationship between a couple of dichotomous strategies as it leads to an incoherent simultaneous discrete response model.",

keywords = "Dichotomous strategies, Complementarity, Incoherent models",

author = "Miravete, {Eugenio J.} and Pern{\'i}as, {Jos{\'e} C.}",

year = "2010",

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AU - Pernías, José C.

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AB - We show that it is not possible to extend Arora (1996) reduced form test for the existence of complementarity to evaluate the relationship between a couple of dichotomous strategies as it leads to an incoherent simultaneous discrete response model.

KW - Dichotomous strategies

KW - Complementarity

KW - Incoherent models

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DO - 10.1016/j.econlet.2009.09.016

M3 - Article

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VL - 106

SP - 28

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JO - Economics Letters

JF - Economics Letters

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