Decision Structures and Discrete Choices: An Application to Labour Market Participation and Fertility
AbstractIn many published studies involving discrete class, a large class of models has been utilised without apparent consideration of either the statistical or the behavioural relationships that exist between different model structures. In this paper the authors consider a number of alternative ways of modelling systems of discrete choice. Joint labour force participation and the fertility decision problem are used as an example. The focus is on the outcome of two decisions: the decision to have children, and whether to work -- full-time, part-time, or not at all. Unlike the majority of work in this area, a class of discrete choice models is subjected to a series of non-nested tests.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0009.
Date of creation: Oct 2000
Date of revision:
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Web page: http://www.econ.cam.ac.uk/index.htm
Discrete choice; Multinomial response; Bivariate models; Labour supply; Fertility; Nonnested tests;
Find related papers by JEL classification:
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-LAB-2000-11-20 (Labour Economics)
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