Testing identifying assumptions in bivariate probit models
Bibliographic Data
| ID | 21653448 |
|---|---|
| Authors | Santiago Acerenza (Department of Economics Universidad ORT Uruguay Montevideo Uruguay), Otávio Bartalotti (0000-0001-5151-3277, Department of Economics Iowa State University Ames Iowa USA), Désiré Kédagni (0000-0001-5741-0797, Department of Economics University of North Carolina at Chapel Hill Chapel Hill NC USA, corresponding author) |
| Year | 2023 |
| Volume | 38 |
| Issue | 3 |
| Pages | 407-422 |
| Publication date | 2023-04-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Applied Econometrics (JOURNAL) |
| Journal identifiers | ISSN: 1099-1255 • E-ISSN: 0883-7252 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/jae.2956 |
| OpenAlex | W3175583512 |
| Language | EN |
| Citations received | 1 |
| References cited | 32 |
This paper considers the bivariate probit model's identifying assumptions: linear index specification, joint normality of errors, instrument exogeneity, and relevance. First, we develop sharp testable equalities that detect all possible observable violations of the assumptions. Second, we propose an easy‐to‐implement testing procedure for the model's validity using existing inference methods for intersection bounds. The test achieves correct empirical size and performs well in detecting violations of the conditions in simulations. Finally, we provide a road map on what to do when the bivariate probit model is rejected, including novel bounds for the average treatment effect that relax the normality assumption
Bivariate analysis · Econometrics · Endogeneity · Inference · Joint probability distribution · Multinomial probit · Multivariate probit model · Normality · Probit · Probit model · Statistics · Advanced Causal Inference Techniques · Computer Science · Health Systems, Economic Evaluations, Quality of Life · Mathematics · Statistical Methods in Clinical Trials · Artificial Intelligence
Assessing Sensitivity to an Unobserved Binary Covariate in an Observational Study with Binary Outcome
Finishing High School and Starting College
Structural Equations, Treatment Effects, and Econometric Policy Evaluation1
An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schooling
Dummy Endogenous Variables in a Simultaneous Equation System
The Effects of Catholic Secondary Schooling on Educational Achievement
The Importance of Check-Cashing Businesses to the Unbanked
Testing Instrument Validity for Late Identification Based on Inequality Moment Constraints
Testing Local Average Treatment Effect Assumptions
Do farmers adopt fewer conservation practices on rented land? Evidence from straw retention in China
Selection on Observed and Unobserved Variables
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2025 - 2025 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |