Poirier (1980, JoE) considered a bivariate probit model in which the binary dependent variables y 1 and y 2 were not observed individually, but the product z = y 1 @y 2 was observed. This paper expands this notion of partial observability to multivariate settings.

We discuss some empirical and methodological issues arising when the Cox test statistic for non-nested models is used to test the probit vs. logit specifications. As an example, we consider the models in Bardasi and Monfardini (1997) for the occupational choice by Italian workers among the private, public and self-employed options. Different versions of the test are compared. The bootstrap tech...

The paper discusses the causes of failure of inflation stabilization plans. Following a description of stylized facts of inflation stabilization, a model of Balance of Payments crises is presented, highlighting some of the main factors leading to the collapse of stabilizations. Empirical results obtained when estimating a binary probit model over a panel of 34 stabilizations identify real excha...

Females’ Willingness to Work and the Discouragement Effect of a Poor Local Childcare Provision We analyze the effects of regional structures on females’ willingness to work as well as on the probability that non-employed women who are willing to work actually will engage in job search. Special permission was granted to link regional data to individual respondents in the German Socio-Economic Pa...

The Kyrgyz Republic was one of the poorest of the Soviet republics and suffered severe shocks with the dissolution of the USSR in 1991. It has also been one of the most rapid reformers among Soviet successor states, and has some of the best household survey data. This paper applies probit analysis to 1993 and 1996 household survey data to examine the correlates of poverty during transition to a...

Few studies have examined whether financial aid affects college retention. This paper models the decision to enroll and re-enroll in college, which yields a bivariate probit model that is estimated using detailed individual data from a large public university. The analysis uses the unique detail of institution-specific data to examine the effect of financial aid on the re-enrollment decision, a...

Many economic decisions are made jointly within households. This raises the question about spouses’ relative influence on joint decisions and the determinants of relative influence. Using a controlled experiment (on inter-temporal choice), we let each spouse first make individual decisions and then make joint decisions with the other spouse. We use a random parameter probit model to measure the...