On the Calculation of Marginal Effects in the Bivariate Probit Model
CES Working Paper, No. 105
Posted: 29 Apr 1998
Date Written: March 1996
We examine the effects of marginal changes in continuous variables on the joint, conditional and marginal probabilities involved in the bivariate probit model. The connection between effects in the univariate and bivariate probit models is also explored. We illustrate these effects using a bivariate model of welfare and labor force participation by lone mothers, using data from the 1989 Labour Market Activity Survey of Canada.
JEL Classification: C24, C34, J12, J16, J21, J22
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