IDEAS home Printed from https://ideas.repec.org/p/tor/tecipa/tecipa-503.html

A note on the identification in two equations probit model with dummy endogenous regressor

Author

Listed:
  • Romuald Meango
  • Ismael Mourifie

Abstract

This paper deals with the question whether exclusion restrictions on the exogenous regressors are necessary to identify two equation probit models with endogenous dummy regressor. Contradictory opinions have been exposed in the literature on the necessity of an exclusion restriction. Wilde (2000) argued that an exclusion restriction is not necessary, and proposed a simple criterion for identi fication in this model. We contradict his result, and show how the inherent incompleteness of the model leads to failure of (point) identi cation. We provide an exact identification proof when an exclusion restriction is available.

Suggested Citation

  • Romuald Meango & Ismael Mourifie, 2013. "A note on the identification in two equations probit model with dummy endogenous regressor," Working Papers tecipa-503, University of Toronto, Department of Economics.
    • Handle: RePEc:tor:tecipa:tecipa-503
    as

    Download full text from publisher

    File URL: https://www.economics.utoronto.ca/public/workingPapers/tecipa-503.pdf
    File Function: Main Text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Juan Carlos Escanciano & Lin Zhu, 2013. "Set inferences and sensitivity analysis in semiparametric conditionally identified models," CeMMAP working papers 55/13, Institute for Fiscal Studies.
    2. Sartori, Anne E., 2003. "An Estimator for Some Binary-Outcome Selection Models Without Exclusion Restrictions," Political Analysis, Cambridge University Press, vol. 11(2), pages 111-138, April.
    3. Sukjin Han & Edward J. Vytlacil, 2013. "Identification in a Generalization of Bivariate Probit Models with Endogenous Regressors," Department of Economics Working Papers 130908, The University of Texas at Austin, Department of Economics.
    4. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    5. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dasgupta, Susmita & Meisner, Craig & Mamingi, Nlandu, 2005. "Pesticide traders'perception of health risks : evidence from Bangladesh," Policy Research Working Paper Series 3777, The World Bank.
    2. D. Fabbri & C. Monfardini & R. Radice, 2004. "Testing exogeneity in the bivariate probit model: Monte Carlo evidence and an application to health economics," Working Papers 514, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. David Dale & Andrei Sirchenko, 2021. "Estimation of nested and zero-inflated ordered probit models," Stata Journal, StataCorp LLC, vol. 21(1), pages 3-38, March.
    4. Li, Chuhui & Cheng, Wenli & Shi, Hui, 2021. "Early marriage and maternal health care utilisation: Evidence from sub-Saharan Africa," Economics & Human Biology, Elsevier, vol. 43(C).
    5. Leiter, Andrea M. & Rheinberger, Christoph M., 2016. "Risky sports and the value of safety information," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 328-345.
    6. Han, Sukjin & Vytlacil, Edward J., 2017. "Identification in a generalization of bivariate probit models with dummy endogenous regressors," Journal of Econometrics, Elsevier, vol. 199(1), pages 63-73.
    7. Frédérique Savignac, 2006. "The impact of financial constraints on innovation: evidence from French manufacturing firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00115717, HAL.
    8. Jason Enia & Patrick James, 2015. "Regime Type, Peace, and Reciprocal Effects," Social Science Quarterly, Southwestern Social Science Association, vol. 96(2), pages 523-539, June.
    9. Quinones, Esteban J. & Barham, Bradford L., 2018. "Endogenous Selection, Migration and Occupation Outcomes for Rural Southern Mexicans," Staff Paper Series 587, University of Wisconsin, Agricultural and Applied Economics.
    10. Jed Devaro & Fidan Ana Kurtulus, 2010. "An Empirical Analysis of Risk, Incentives and the Delegation of Worker Authority," ILR Review, Cornell University, ILR School, vol. 63(4), pages 641-661, July.
    11. Di Novi, Cinzia & Kovacic, Matija & Orso, Cristina Elisa, 2024. "Online health information seeking behavior, healthcare access, and health status during exceptional times," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 675-690.
    12. Entorf, Horst, 2013. "Criminal Victims, Victimized Criminals, or Both? A Deeper Look at the Victim-Offender Overlap," IZA Discussion Papers 7686, IZA Network @ LISER.
    13. Tiffany Green, 2011. "Infant feeding and asthma: is breast milk best?," Review of Economics of the Household, Springer, vol. 9(4), pages 487-504, December.
    14. Chaohsin Lin & Shuofen Hsu, 2025. "The effects of selection and moral hazard in additional health insurance in a universal healthcare system: evidence from Taiwan," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 50(2), pages 444-466, April.
    15. Li, Chuhui & Poskitt, D.S. & Zhao, Xueyan, 2019. "The bivariate probit model, maximum likelihood estimation, pseudo true parameters and partial identification," Journal of Econometrics, Elsevier, vol. 209(1), pages 94-113.
    16. Steve Bradley & Rob Crouchley, 2020. "The effects of test scores and truancy on youth unemployment and inactivity: a simultaneous equations approach," Empirical Economics, Springer, vol. 59(4), pages 1799-1831, October.
    17. Chandana Maitra & Vani Sethi & Sayeed Unisa & Sriram Shankar, 2019. "Household Food Insecurity and Maternal and Child Nutritional Status: Evidence from Maharashtra," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 63-101, November.
    18. Brad R. Humphreys & Logan McLeod & Jane E. Ruseski, 2014. "Physical Activity And Health Outcomes: Evidence From Canada," Health Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 33-54, January.
    19. Chiburis, Richard C., 2010. "Semiparametric bounds on treatment effects," Journal of Econometrics, Elsevier, vol. 159(2), pages 267-275, December.
    20. Stephen Finger & Shanti Gamper-Rabindran, 2013. "Testing the effects of self-regulation on industrial accidents," Journal of Regulatory Economics, Springer, vol. 43(2), pages 115-146, April.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tor:tecipa:tecipa-503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePEc Maintainer (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.