On the Calculation of Marginal Effects in the Bivariate Probit Model

CES Working Paper, No. 105

Posted: 29 Apr 1998

See all articles by Louis N. Christofides

Louis N. Christofides

University of Cyprus - Department of Economics; University of Guelph; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Thanasis Stengos

University of Guelph - Department of Economics

Robert Swidinsky

University of Guelph - Department of Economics

Date Written: March 1996

Abstract

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

Suggested Citation

Christofides, Louis N. and Stengos, Thanasis and Swidinsky, Robert, On the Calculation of Marginal Effects in the Bivariate Probit Model (March 1996). CES Working Paper, No. 105. Available at SSRN: https://ssrn.com/abstract=4118

Louis N. Christofides (Contact Author)

University of Cyprus - Department of Economics ( email )

75 Kallipoleos Street
P.O. Box 20537
1678 Nicosia
Cyprus
357 22 892448 (Phone)
357 22 892432 (Fax)

University of Guelph ( email )

Guelph, Ontario
Canada
001-519-763-8497 (Phone)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Thanasis Stengos

University of Guelph - Department of Economics ( email )

50 Stone Road East
Guelph, Ontario N1G 2W1
Canada

Robert Swidinsky

University of Guelph - Department of Economics ( email )

Guelph, Ontario
Canada

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