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Quasi Maximum Likelihood Estimation of Multivariate Probit Models: Farm Couples' Labor Participation

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  • Ayal Kimhi

Abstract

Joint estimation of farmers' farm and off-farm work participation requires a multivariate probit model, in which the number of equations is twice the number of household members. Where there are more than two such equations, I suggest a quasi maximum likelihood method which requires only two levels of numerical integration. The method maximizes the use of sample information given this numerical feasibility condition. It is used for estimating a joint participation model of farm couples' farm and off-farm work. The model yields conclusions about comparative advantages of men and women in farm, off-farm, and housework, which cannot be obtained with a more limited setup.

Suggested Citation

  • Ayal Kimhi, 1994. "Quasi Maximum Likelihood Estimation of Multivariate Probit Models: Farm Couples' Labor Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 828-835.
    • Handle: RePEc:oup:ajagec:v:76:y:1994:i:4:p:828-835.
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