William G. Tyler, Lung-Fei Lee, On Estimating Stochastic Frontier Production Functions and Average Efficiency: An Empirical Analysis with Columbian Micro Data, The Review of Economics and Statistics, Vol. 61, No. 3 (Aug., 1979), pp. 436-438

Lung-Fei Lee, G. S. Maddala, R. P. Trost, Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity, Econometrica, Vol. 48, No. 2 (Mar., 1980), pp. 491-503

Lung-Fei Lee, Robert H. Porter, Switching Regression Models with Imperfect Sample Separation Information--With an Application on Cartel Stability, Econometrica, Vol. 52, No. 2 (Mar., 1984), pp. 391-418

This paper extends Brock and Durlauf's (2001a, 2001b) binary choice complete network (or group interaction) model with homogeneous rational expectations to a general network model with heterogeneous rational expectations. In our model, individuals will form expectations regarding peers' behaviors taking into account their characteristics. Endogenous, contextual, and correlated effects are all identifiable. Conditions for unique equilibrium are established. For a complete network with heterogeneous rational expectations, multiple equilibria can be characterized by an aggregate scalar index. The empirical results on adolescents' smoking behaviors show significant endogenous and contextual effects, even after controlling for school-grade random effects and school fixed effects.