On the Calculation of Marginal Effects in the Bivariate Probit Model

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On the Calculation of Marginal Effects in the Bivariate Probit Model

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Christofides, Louis N.
Stengos, Thanasis
Swidinsky, Robert

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Abstract

We examine the effects of marginal changes in continuous variables on the joint, conditional and marginal probabilities involved in the bivariate probit model. The connection between effects in the univariate and bivariate probit models are also explored. We illustrate these effects using a bivariate model of welfare and labor force participation by lone mothers, using data from the 1989 Labour Market Activity Survey of Canada.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 105.

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Date of creation: 1996
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Handle: RePEc:ces:ceswps:_105

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Article
- Christofides, Louis N. & Stengos, Thanasis & Swidinsky, Robert, 1997. "On the calculation of marginal effects in the bivariate probit model," Economics Letters, Elsevier, vol. 54(3), pages 203-208, July. [Downloadable!] (restricted)

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