Show Summary Details

Page of

Printed from Oxford Research Encyclopedias, Business and Management. Under the terms of the licence agreement, an individual user may print out a single article for personal use (for details see Privacy Policy and Legal Notice).

date: 23 February 2024

Limited Dependent Variables in Management Researchlocked

Limited Dependent Variables in Management Researchlocked

  • Harry BowenHarry BowenMcColl School of Business, Queens University of Charlotte


A limited dependent variable (LDV) is an outcome or response variable whose value is either restricted to a small number of (usually discrete) values or limited in its range of values. The first type of LDV is commonly called a categorical variable; its value indicates the group or category to which an observation belongs (e.g., male or female). Such categories often represent different choice outcomes, where interest centers on modeling the probability each outcome is selected. An LDV of the second type arises when observations are drawn about a variable whose distribution is truncated, or when some values of a variable are censored, implying that some values are wholly or partially unobserved. Methods such as linear regression are inadequate for obtaining statistically valid inferences in models that involve an LDV. Instead, different methods are needed that can account for the unique statistical characteristics of a given LDV.


  • Research Methods

You do not currently have access to this article


Please login to access the full content.


Access to the full content requires a subscription