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Decision Structures and Discrete Choices: An Application to Labour Market Participation and Fertility

  • Di Tommaso, M.L.
  • Weeks, M.

In 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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File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/wp0009.pdf
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Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0009.

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Date of creation: Oct 2000
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Handle: RePEc:cam:camdae:0009
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  1. James J. Heckman & Robert J. Willis, 1976. "Estimation of a Stochastic Model of Reproduction: An Econometric Approach," NBER Chapters, in: Household Production and Consumption, pages 99-146 National Bureau of Economic Research, Inc.
  2. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, .
  3. Weeks, M. & Orne, C., 1999. "The Statistical Relationship between Bivariate and Multinomial Choice Models," Cambridge Working Papers in Economics 9912, Faculty of Economics, University of Cambridge.
  4. Moffitt, Robert, 1984. "Profiles of Fertility, Labour Supply and Wages of Married Women: A Complete Life-Cycle Model," Review of Economic Studies, Wiley Blackwell, vol. 51(2), pages 263-78, April.
  5. Geoffrey Carliner & Christopher Robinson & Nigel Tomes, 1980. "Female Labour Supply and Fertility in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 46-64, February.
  6. Melvyn Weeks, . "Testing Binomial and Multinomial Choice Models Using Cox's Non-Nested Test," Discussion Papers 95/45, Department of Economics, University of York.
  7. Di Tommaso, Maria Laura, 1999. "A Trivariate Model of Participation, Fertility and Wages: The Italian Case," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 623-40, September.
  8. John G. Cragg & Russell S. Uhler, 1970. "The Demand for Automobiles," Canadian Journal of Economics, Canadian Economics Association, vol. 3(3), pages 386-406, August.
  9. White, Halbert, 1982. "Regularity conditions for cox's test of non-nested hypotheses," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 301-318, August.
  10. Victor R. Fuchs & Alan B. Krueger & James M. Poterba, 1998. "Economists' Views about Parameters, Values, and Policies: Survey Results in Labor and Public Economics," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1387-1425, September.
  11. Pesaran, B. & Pesaran, M.H., 1992. "A Non-Nested Test of Level-Differenced versus Log-Differenced Stationary Models," Cambridge Working Papers in Economics 9222, Faculty of Economics, University of Cambridge.
  12. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
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