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Tutz, Gerhard and Edlich, Silke and Bäumer, Christoph (1999): Comparison between local estimates for multi-categorical varying-coefficent models. Collaborative Research Center 386, Discussion Paper 151
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Abstract

Varying coefficient models with discrete values of the effect modifier may be estimated by maximum likelihood or weighted least square techniques. We compare bias reduction methods for both estimates as well as the performance of the estimates as compared to each other.