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Mixed probit models are widely applied in many fields where prediction of a binary response is of interest. Typically, the random effects are assumed to be independent but this is seldom so for many real applications. In the credit risk application that is considered in the paper, random effects are present at the level of industrial sectors and they are expected to be correlated because of interfirm...
Fertility plans, measured by the number of planned children, have been found to be affected by education and family background via complex tail dependences. This challenge was previously met with the use of non‐parametric jittering approaches. The paper shows how a novel generalized additive model based on a discrete Weibull distribution provides partial effects of the covariates on fertility plans...
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