Partial observability in bivariate probit models

1980 ◽  
Vol 12 (2) ◽  
pp. 209-217 ◽  
Author(s):  
Dale J. Poirier
Author(s):  
Henry Lahr ◽  
Andrea Mina

Abstract We investigate which indicators of a firm’s innovation activities are associated with financial constraints and analyze the nature and direction of causal links between innovation and financial constraints. By estimating simultaneous bivariate probit models on data from the UK Innovation Surveys, we show that among innovation inputs, research and development (R&D) activity increases the likelihood that firms face financial constraints. Among innovation outputs, only new-to-market products generate financial constraints. Reverse effects on innovation appear limited to external R&D.


2018 ◽  
Vol 7 (3) ◽  
pp. 651-659 ◽  
Author(s):  
Florian M. Hollenbach ◽  
Jacob M. Montgomery ◽  
Adriana Crespo-Tenorio

Bivariate probit models are a common choice for scholars wishing to estimate causal effects in instrumental variable models where both the treatment and outcome are binary. However, standard maximum likelihood approaches for estimating bivariate probit models are problematic. Numerical routines in popular software suites frequently generate inaccurate parameter estimates and even estimated correctly, maximum likelihood routines provide no straightforward way to produce estimates of uncertainty for causal quantities of interest. In this note, we show that adopting a Bayesian approach provides more accurate estimates of key parameters and facilitates the direct calculation of causal quantities along with their attendant measures of uncertainty.


2002 ◽  
Vol 10 (2) ◽  
pp. 101-112 ◽  
Author(s):  
Adam Przeworski ◽  
James Raymond Vreeland

In most situations of bilateral cooperation we can observe only whether or not potential partners actually cooperate. Yet we often want to know what factors lead the actors to enter into and continue cooperation. The model we develop—a dynamic version of bivariate probit with partial observability—permits one to estimate the probabilities that either of two parties would want to cooperate and to identify the factors that affect these probabilities. As an illustration, we focus on agreements between national governments and the International Monetary Fund. The model should have a wide applicability.


Author(s):  
Meghna Chakraborty ◽  
Harprinderjot Singh ◽  
Peter T. Savolainen ◽  
Timothy J. Gates

Research has consistently demonstrated that seatbelt use is critically important in reducing the likelihood of fatal and serious injuries resulting from traffic crashes. However, after years of nationwide increases in seatbelt use, these rates have largely plateaued, motivating the need for research to better understand those circumstances under which seatbelt use remains relatively low. At an aggregate level, research has shown that occupants in the same vehicle tend to exhibit correlation in seatbelt use or non-use. This suggests that social dynamics may play a role in occupants’ decisions as to whether or not to wear a seatbelt. To that end, this study examines trends in seatbelt use among pairs of drivers and front-seat passengers using data from direct observation roadside surveys. Bivariate probit models are estimated to examine the relationship between seatbelt use and various demographic, vehicle, and site-specific factors. The bivariate framework is also able to account for correlation among important unobserved factors associated with seatbelt use. The results show significantly better fit as compared with independent univariate probit models. The results also suggest both direct and indirect relationships between seatbelt use and various demographic, vehicle, and site characteristics. Seatbelt use rates are found to vary based on occupants’ age, gender, and race. Furthermore, seatbelt use by both the driver and front-seat passenger is also shown to vary based on the other occupant’s age. Heterogeneity is also shown across various geographic regions and roadway functional classes.


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