Interaction and quadratic effects in probit model with endogenous regressors

摘要

This paper proposes a method to estimate the interaction and quadratic effects in probit model with endogenous regressors, which generalizes Ai and Norton (2003)'s study on the interaction effect in nonlinear model without endogenous regressors. The method is applied to estimate the interaction effect of the new-typed information tool usage and social network and the quadratic effect of age on the household risky assets investment, where the bootstrap standard errors of the two effects are provided. (C) 2020 Elsevier B.V. All rights reserved.