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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

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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  • 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.
  • Handle: RePEc:eee:ecolet:v:54:y:1997:i:3:p:203-208
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    1. Davin, Bérengère & Paraponaris, Alain & Verger, Pierre, 2009. "Socioeconomic determinants of the need for personal assistance reported by community-dwelling elderly: Empirical evidence from a French national health survey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 138-146, January.
    2. Daniëlle Bertrand-Cloodt & Frank Cörvers & Hans Heijke, 2017. "Ability, Academic Climate, and Going Abroad for Work or Pursuing a PhD," CESifo Economic Studies, CESifo, vol. 63(1), pages 119-140.
    3. Rahman, Sanzidur, 1. "Determinants of Crop Choices by Bangladeshi Farmers: A Bivariate Probit Analysis," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 5(1).
    4. repec:lan:wpaper:4539 is not listed on IDEAS
    5. Velandia, Margarita & Clark, Christopher D. & Lambert, Dayton M. & Davis, James A. & Jensen, Kimberly & Wszelaki, Annette & Wilcox, Michael D., 2014. "Factors Affecting Producer Participation in State-sponsored Marketing Programs: The Case of Fruit and Vegetable Growers in Tennessee," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(02), pages 249-265, August.
    6. Ruckman, Karen, 2004. "Mode of entry mode into a foreign market: the case of U.S. mutual funds in Canada," Journal of International Economics, Elsevier, vol. 62(2), pages 417-432, March.
    7. John Mullahy, 2017. "Marginal effects in multivariate probit models," Empirical Economics, Springer, vol. 52(2), pages 447-461, March.
    8. Matthieu Bunel, 2004. "Les conjoints des salariés passés à 35 heures travaillent-ils davantage ? Une analyse de l'offre de travail familiale sur données françaises," Économie et Prévision, Programme National Persée, vol. 164(3), pages 165-188.
    9. G Johnes, 2000. "Wage differentials and the responsiveness of labor supply: an international comparison," Working Papers 539615, Lancaster University Management School, Economics Department.
    10. Rosas, Francisco & Acerenza, Santiago & Orazem, Peter, 2016. "Optimal pricing strategies for a cluster of goods: Own- and cross-price effects with correlated tastes," ISU General Staff Papers 201611300800001008, Iowa State University, Department of Economics.
    11. Louis N. Christofides, 2000. "Social assistance and labour supply," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 715-741, August.
    12. Moussa KEITA, 2014. "Pauvreté et arbitrage entre scolarisation et travail des enfants au Mali," Working Papers 201418, CERDI.
    13. M. Colom & M. Molés, 2013. "Housing and labor decisions of households," Review of Economics of the Household, Springer, vol. 11(1), pages 55-82, March.
    14. repec:lan:wpaper:4843 is not listed on IDEAS
    15. Kajal Lahiri & Guibo Xing, 2004. "An econometric analysis of veterans’ health care utilization using two-part models," Empirical Economics, Springer, vol. 29(2), pages 431-449, May.
    16. Giovanni Bruno & Orietta Dessy, 2014. "Average partial effects in multivariate probit models with latent heterogeneity: Monte Carlo experiments and an application to immigrants' ethnic identity and economic performance," Italian Stata Users' Group Meetings 2014 10, Stata Users Group.
    17. Julia Blasch & Nilkanth Kumar & Massimo Filippini, 2016. "Boundedly rational consumers, energy and investment literacy, and the display of information on household appliances," CER-ETH Economics working paper series 16/249, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    18. repec:lan:wpaper:4411 is not listed on IDEAS
    19. Hasebe, Takuya, 2013. "Marginal effects of a bivariate binary choice model," Economics Letters, Elsevier, vol. 121(2), pages 298-301.
    20. Diaz-Serrano, Luis, 2005. "On the negative relationship between labor income uncertainty and homeownership: Risk-aversion vs. credit constraints," Journal of Housing Economics, Elsevier, vol. 14(2), pages 109-126, June.
    21. William Greene, 2007. "Discrete Choice Modeling," Working Papers 07-6, New York University, Leonard N. Stern School of Business, Department of Economics.
    22. Kajal Lahiri & Guibo Xing, 2002. "An Empirical Analysis of Medicare-eligible Veterans' Demand for Outpatient Health Care Services," Discussion Papers 02-01, University at Albany, SUNY, Department of Economics.
    23. repec:spr:waterr:v:31:y:2017:i:14:d:10.1007_s11269-017-1769-4 is not listed on IDEAS
    24. repec:lan:wpaper:4412 is not listed on IDEAS

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