The Department of Economics Econometrics Seminar presents
"Multivariate Versus Multinomial Probit: When are Binary Decisions Made Separately
also Jointly Optimal?"
with Dale Poirier, Professor of Economics, UCI and Deven Kapadia, Economics Graduate Student, UCI
Wednesday, May 23, 2012
Social Science Plaza B, Room 3266 (Econ Library)
Poirier and Kapadia provide an analysis of the question in the title in terms of a bivariate probit framework representing two (possibly correlated) separate decisions, and a multinomial probit framework representing the four possible outcomes viewed as one joint decision. They offer a Bayesian treatment that builds on Weeks and Orme (1998) and Di Tommaso and Weeks (2000) who showed that the bivariate probit corresponds to a singular four-dimensional multinomial probit under testable restrictions. They will also discuss extensions to trivariate and quadvariate probit.
For further information, please contact Gloria Simpson, email@example.com or 949-824-5788.