The correlated probit model is frequently used for multiple ordered data since it allows to incorporate seamlessly different correlation structures. The estimation of the probit model parameters based on direct maximization of the limited information maximum likelihood is a numerically intensive procedure. We propose an extension of the EM algorithm for obtaining maximum likelihood estimates fo...

Factor structures or interactive effects are convenient devices to incorporate latent variables in panel data models. We consider fixed effect estimation of nonlinear single-index models with factor the unobservables, which include logit, probit, ordered probit and Poisson specifications. establish that estimators model parameters average partial have normal distributions when two dimensions gr...

We discuss the application of the GHK simulation method for maximum likelihood estimation of the multivariate probit regression model and describe and illustrate a Stata program mvprobit for this purpose.

Based on a unique firm-level data set from the German manufacturing sector, this paper disentangles environmental and non-environmental product and process innovations. The multivariate probit analysis shows that the various innovation types are determined by different factors. The estimation results suggest a policy mix which comprises the encouragement of R&D activities, certified management ...

In the present paper a mixed generalized estimating/pseudo-score equations (GEPSE) approach together with a distribution-free multiple imputation technique is proposed for the estimation of regression and correlation structure parameters of multivariate probit models with missing values for an ordered categorical time-invariant variable. Furthermore, a generalization of the squared trace correl...

asymmetric information in iran’s insurance market: case study for automobile insurance in iran insurance companythis research aims to test the presence of asymmetric information by using the dynamic information of automobile policyholders in the iran insurance company (iic). the conditional independence test is conducted by bivariate probit model, the dynamic properties which are presented for ...

in recent decades, large investments have been made to introduce soil conservation methods, but most of these efforts have had limited success in achieving the goals. as a result, attempt to identify the factors deterring or promoting adoption of soil conservation practices is important. therefore, this study aimed to investigate factors affecting adoption of soil conservation practices by rain...

This paper explains how to calculate adjusted risk ratios and risk differences when reporting results from logit, probit, and related nonlinear models. Building on Stata’s margins command, we create a new post-estimation command adjrr that calculates adjusted risk ratios (ARR) and adjusted risk differences (ARD) after running logit or probit models with either binary, multinomial, or ordered ou...

An important task in deriving a summary measure of health is to incorporate stated preferences into health state classifications. This paper examines a range of alternative econometric models for dealing with a skewed, truncated, non-continuous and hierarchical (at the individual level) data set of standard gamble valuations of health states defined by the health state classification the SF-6D....