The Statistical Relationship between Bivariate and Multinomial Choice Models

Authors
Weeks, Melvyn 
Orne, Chris 

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Type
Working Paper
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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.

Date
2004-06-16T16:05:53Z
Keywords
discrete choice, bivariate probit, multinomial probit, nested choice models
Publisher
Faculty of Economics