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A Note on Additive Separability - fisher osu

A Note on Additive Separability - fisher osu 2025

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The document discusses the standard binary choice model in econometrics, which typically assumes a latent index that is additively separable and linear in observable and unobservable variables. It presents new representation results showing that nonseparable latent index functions can also be represented as additively separable or linear, indicating that the assumptions of linearity and additive separability are less restrictive than previously thought. The findings extend the understanding of latent index models in binary choice contexts.

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