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
3:30-5:00 p.m.
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, simpsong@uci.edu or 949-824-5788.