The Statistical Relationship between Bivariate and Multinomial Choice Models
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Authors
Weeks, Melvyn
Orne, Chris
Publication Date
2004-06-16Series
Cambridge Working Papers in Economics
Publisher
Faculty of Economics
Language
en_GB
Type
Working Paper
Metadata
Show full item recordCitation
Weeks, M., & Orne, C. (2004). The Statistical Relationship between Bivariate and Multinomial Choice Models. https://doi.org/10.17863/CAM.5152
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, Classification-JEL: C25, C21, C12, C35
Identifiers
This record's DOI: https://doi.org/10.17863/CAM.5152
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