computer science

LIMDEP

LIMDEP is a computer science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand LIMDEP rather than just read about it. In short: LIMDEP is an econometric and statistical software package with a variety of estimation tools. In addition to the core econometric tools for analysis of cross sections and time series, LIMDEP supports methods for panel data analysis, frontier and efficiency estimation and discrete choice modeling.

Key takeaways

LIMDEP belongs to computer science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect LIMDEP to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of LIMDEP from memory before moving on to harder problems.

Reference excerpt

LIMDEP is an econometric and statistical software package with a variety of estimation tools. In addition to the core econometric tools for analysis of cross sections and time series, LIMDEP supports methods for panel data analysis, frontier and efficiency estimation and discrete choice modeling. The package also provides a programming language to allow the user to specify, estimate and analyze models that are not contained in the built in menus of model forms.

History LIMDEP was first developed in the early 1980s. Econometric Software, Inc. was founded in 1985 by William H. Greene. The program was initially developed as an easy-to-use tobit estimator—hence the name, LIMited DEPendent variable models. Econometric Software has continually expanded since the early 1980s and currently has locations in the United States and Australia. The ongoing development of LIMDEP has been based partly on interaction and feedback from users and from the collaboration of many researchers. LIMDEP is used by researchers in universities, government institutions, and businesses. LIMDEP has spun off a major suite of programs for the estimation of discrete choice models, NLOGIT, now a self standing superset of LIMDEP. As of November 2024, the LIMDEP website states that "After 35 years of developing and providing pioneering tools for microeconometric analysis, Econometric Software, Inc. is closing its operations."

User interface The main functionality of the program is accessed through a command line interface. Command streams are provided to the program via scripts or as text processed in a text editing format. It also includes a graphical user interface within which all program features can be accessed via menus or command generating dialog boxes. All GUI command generators produce transportable scripts that can be reused and modified in the command editor.

Data input, formats and storage Any number of data sets may be analyzed simultaneously. Data are input via standard ASCII formats such as CSV, DIF and rectangular ASCII, as well as XLS, Stata DTA (some versions) and binary. Data may be exported in CSV, rectangular ASCII and binary formats. The native save format (LPJ) has not changed since the release of the Windows version in 1997. All versions may exchange data sets. Data storage and all computations are always in double precision. Active data set size limitation is imposed by the available memory.

List server LIMDEP supports a list server based discussion group. Anyone (users and interested nonusers) may subscribe to the list server. The list server is maintained at the University of Sydney.

Models There are model formulations for linear and nonlinear regression, robust estimation, discrete choice (including binary choice, ordered choice and unordered multinomial choice), censoring and truncation, sample selection, loglinear models, survival analysis, quantile regression (linear and count), panel data, stochastic frontier and data envelopment analysis, count data, and time series.

Data Analysis Analysis of a data set is done interactively in a set of windows. Program control may be from a pull down menu or in an unstructured session of instructions and manipulations. Estimation involves:

Data management, including input from standard sources (such as Excel), transformations and sample controls Programming language, matrix algebra package and scientific calculator Random number generation, matrix for bootstrapping, Gibbs sampling and Monte Carlo simulation Graphical and numeric descriptive statistics analysis Optimization tools for maximum likelihood, GMM, or maximum simulated likelihood estimators Post estimation tools for simulation, hypothesis testing, and partial effects Computational methods that match the National Institute of Standards and Technology test problems

Resources The PDF documentation set includes reference guides for the operation, background econometrics, and sample applications.

See also List of statistical packages Comparison of statistical packages

Notes

References Chang, Jae Bong and Lusk, Jayson (2011). "Mixed Logit Models: Accuracy and Software Choice". Journal of Applied Econometrics 26: 167-172. Greene, William and Hensher, David (2010). Modeling Ordered Choices. Cambridge University Press. MacKie-Mason, Jeffrey K. (1992). "Econometric Software: A User's View". Journal of Economic Perspectives. 6 (4): 165–187. doi:10.1257/jep.6.4.165.

Worked examples

Example 1 — a first encounter with LIMDEP

Start with the simplest possible case. Write down what LIMDEP claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In computer science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to LIMDEP before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about LIMDEP ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of LIMDEP

In research: LIMDEP appears in computer science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses LIMDEP in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: LIMDEP is common in secondary-school and first-year university syllabi. It links to neighbouring topics Econometrics software, Proprietary software, so understanding it makes those chapters shorter.
In everyday life: Look for LIMDEP outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study LIMDEP in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what LIMDEP means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain LIMDEP out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is LIMDEP in simple terms?

Why does LIMDEP matter?

Because it connects several computer science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study LIMDEP?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on LIMDEP.