The Statistical Relationship between Bivariate and Multinomial Choice Models

Melvyn Weeks () and C. Orne

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: The authors demonstrate the conditions under which the bivariate probit model can be considered a special case of the more general multinomial probit model. Since the attendant parameter restrictions produce a singular covariance matrix, the subsequent problems of testing on the boundary of the parameter space are circumvented by the construction of a score test.

Keywords: Discrete choice; Bivariate probit; Multinomial probit; Nested choice models (search for similar items in EconPapers)
JEL-codes: C12 C21 C25 C35 (search for similar items in EconPapers)
Date: 1999-06
New Economics Papers: this item is included in nep-ecm
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://files.econ.cam.ac.uk/repec/cam/pdf/wp9912.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:9912

Access Statistics for this paper

More papers in Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge
Bibliographic data for series maintained by Jake Dyer ().