Testing Binary Parametric Models Against their Semiparametric Alternatives Using Commands Written in Version 4.8 of the XploRe Package

Abstract

The aim of this study is to introduce the commands we wrote for testing the parametric logit and probit models against their semiparametric alternatives in the windows based version 4.8 of the XploRe package, and to show their applicability by using an artificial data set. This study extends the study of I. Proenca and A. Werwatz (Comparing Parametric and Semiparametric Binary Response Models, Sonderforschungsbereich 373 2000-20, Humboldt Universitaet, Berlin, 1994) in which the code was written in the old MsDOS format of XploRe for the parametric logit model, and only for the model with continuous explanatory variables. Here the parametric probit model and the mixed type of the explanatory variables (continuous-discrete) axe also discussed, and the new XploRe commands generated for these. types of model. Uniform Confidence Band limits have been used as the testing criteria.