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Quasi Maximum Likelihood Estimation of Multivariate Probit Models: Farm Couples' Labor Participation

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  • Ayal Kimhi

Abstract

Joint estimation of farmers' farm and off-farm work participation requires a multivariate probit model, in which the number of equations is twice the number of household members. Where there are more than two such equations, I suggest a quasi maximum likelihood method which requires only two levels of numerical integration. The method maximizes the use of sample information given this numerical feasibility condition. It is used for estimating a joint participation model of farm couples' farm and off-farm work. The model yields conclusions about comparative advantages of men and women in farm, off-farm, and housework, which cannot be obtained with a more limited setup.

Suggested Citation

  • Ayal Kimhi, 1994. "Quasi Maximum Likelihood Estimation of Multivariate Probit Models: Farm Couples' Labor Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 828-835.
  • Handle: RePEc:oup:ajagec:v:76:y:1994:i:4:p:828-835.
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    File URL: http://hdl.handle.net/10.2307/1243744
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    Citations

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    Cited by:

    1. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    2. Catherine Benjamin & Ayal Kimhi, 2006. "Farm work, off-farm work, and hired farm labour: estimating a discrete-choice model of French farm couples' labour decisions," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 149-171, June.
    3. Nong Zhu & Xubei Luo, 2010. "The impact of migration on rural poverty and inequality: a case study in China," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 191-204, March.
    4. Kimhi, Ayal, 1996. "Farmers' time allocation between farm work and off-farm work and the importance of unobserved group effects: evidence from Israeli cooperatives," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 14(2), July.
    5. Huffman, Wallace E. & El-Osta, Hisham, 1997. "Off-Farm Work Participation, Off-Farm Labor Supply and On-Farm Labor Demand of U.S. Farm Operators," ISU General Staff Papers 199712010800001290, Iowa State University, Department of Economics.
    6. Ayal Kimhi, 2004. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 502-512.
    7. Ayal Kimhi, 1999. "Estimation of an endogenous switching regression model with discrete dependent variables: Monte-Carlo analysis and empirical application of three estimators," Empirical Economics, Springer, vol. 24(2), pages 225-241.
    8. Steven T. Yen & Biing-Hwan Lin, 2008. "Quasi-maximum likelihood estimation of a censored equation system with a copula approach: meat consumption by U.S. individuals," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 207-217, September.

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