Accounting for omitted variables in a discrete time panel data model of residential mobility

The problems of omitted variables in the empirical analysis of dynamic social processes is explained and alternative approaches to its solution briefly reviewed. The beta-logistic model of Heckman and Willis (1977) is introduced and then generalised for application to processes which include event history effects and time-varying covariates. The problem of initial conditions is explained. The generalised beta-logistic model is applied to residential mobility histories of households from the Michigan Panel Study of Income Dynamics.