Partial observability in bivariate probit models

Poirier, Dale J.

doi:10.1016/0304-4076(80)90007-x

Cited by 423 publications

(287 citation statements)

References 5 publications

Supporting

Mentioning

279

Contrasting

Unclassified

Order By: Relevance

“…It discusses how each type of childcare is confronted with its own type of supply restrictions and, consequently, households may feel restricted in their childcare choice. Furthermore it shows how household specific offer probabilities for childcare are estimated by applying a partial observability framework as suggested by Poirier (1980 Subsidized formal care, which receives cost-covering subsidies from the government body 'Child and Family', is mainly organised by social organisations. Non-subsidized care consists of a mixed population of non-profit and for-profit organisations, though no large corporations are active in childcare services in Flanders.…”

Section: Three Types Of Supply Restrictions In the Childcare Sectormentioning

confidence: 99%

“…To estimate these supply probabilities, we rely on a simultaneous estimate of demand and supply of childcare using the partial observability probit framework suggested by Poirier (1980) and adapted to a childcare setting by Viitanen and Chevalier (2003). We do not apply the modified framework suggested by Wrohlich (2008), because, unlike Germany, we see no large group of municipalities with full coverage, as already documented above.…”

Section: Estimating Perceived Supply Restrictions: Partial Observabilmentioning

confidence: 99%

See 1 more Smart Citation

Maternal employment: the impact of triple rationing in childcare

et al. 2014

View full text Add to dashboard Cite

This paper analyses how maternal labor supply relates to the availability of childcare services in Flanders, a region that has a fairly abundant service provision, but does not offer a service guarantee as in several Nordic countries. Variation in price/quantity bundles that stems from the interplay of three types of childcare services are used to identify mothers' labor supply responses. The estimates indicate that policy measures which increase the availability may exhibit large labor supply effects. Moreover, budgetary simulations suggest the expansion of subsidised care services to be beneficial to the exchequer.Electronic supplementary material The online version of this article

show abstract

Section: Three Types Of Supply Restrictions In the Childcare Sectormentioning

confidence: 99%

Section: Estimating Perceived Supply Restrictions: Partial Observabilmentioning

confidence: 99%

Maternal employment: the impact of triple rationing in childcare

et al. 2014

View full text Add to dashboard Cite

show abstract

“…Following the existing literature focusing on the double or generalized selection process (e.g., Poirier, 1980;Lee, 1983;Tunali, 1986;Mohanty, 2001), Equation (3) can be consistently estimated by correcting the two selectivity biases:…”

Section: The Empirical Modelsmentioning

confidence: 99%

Bidders' Entry and Auctioneer's Rejection: Applying a Double Selection Model to Road Procurement Auctions

Estache

Iimi²

2011

Journal of Applied Economics

View full text Add to dashboard Cite

Limited competition has been a serious concern in infrastructure procurement. Importantly, however, there are normally a number of potential bidders initially showing interest in proposed projects. This paper focuses on tackling the question why these initially interested bidders fade out. An empirical problem is that no bids of fading-out firms are observable. They could decide not to enter the process at the beginning of the tendering or may be technically disqualified at any point of the selection process. The paper applies the double selection model to procurement data from road development projects in developing countries and examines why competition ends up restricted. It shows that bidders are self-selective and auctioneers also tend to limit participation depending on the size of contracts. Then, limited competition would likely lead to high infrastructure procurement costs.

show abstract

“…To address this identification problem, I use a bivariate probit model with partial observability as discussed in Poirier (1980) and Feinstein (1990). In essence, this technique models the observed outcome (detected fraud) as a function of the joint realizations of two latent processes.…”

Section: A Model With Partial Observability Of Fraudmentioning

confidence: 99%

“…This is because we only observe the joint outcome of two latent processes, and the decomposition between the two latent components may not be unique. According to Poirier (1980), the conditions for full identification of the model parameters are (1) x F,i and x D,i do not contain exactly the same variables; and (2) the explanatory variables exhibit substantial variations in the sample.…”

Section: Model Identification and Estimationmentioning

confidence: 99%

Securities Fraud: An Economic Analysis

Wang

2005

SSRN Journal

View full text Add to dashboard Cite

This thesis develops an economic analysis of securities fraud. The thesis consists of a theory essay and an empirical essay. In the theory essay, I analyze a firm's propensity to commit securities fraud and the real consequences of fraud. I show that fraud can lead to investment distortions.I characterize the nature of the distortions, and show that it results from fraud-induced market mispricing and management's ability to influence the firm's litigation risk through investment. The theory also characterizes the equilibrium supply of fraud. I demonstrate the linkages between a firm's fraud propensity and the structure of its assets in place and growth options, and analyze the effect of corporate governance on fraud. The theory provides testable implications on crosssectional determinants of firms' fraud propensities and the relation between fraud and investment.In the empirical essay, I test my main model predictions, using a new hand-compiled fraud data set. I use econometric methods to account for the unobservability of undetected frauds, and disentangle the effects of cross-sectional variables into their effect on the probability of committing fraud and the effect on the probability of detecting fraud. I find that the level, type, and financing of investment all matter in determining the probability of fraud and the likelihood of detection. I also examine the monitoring roles of large shareholders, institutional owners, independent auditors, and corporate boards. I find that large block or institutional holdings tend to discourage fraud by increasing the detection likelihood. The roles of independent auditors and corporate board are weaker. Finally, insider equity incentives, growth potential, external financing needs and profitability all influence a firm's propensity to commit fraud. The paper also demonstrates the importance of separating fraud commitment and fraud detection, because cross-sectional variables can have opposing effects on these two components, and therefore can be masked in their overall effect on the incidence of detected fraud.

show abstract

Partial observability in bivariate probit models

Cited by 423 publications

References 5 publications

Maternal employment: the impact of triple rationing in childcare

Maternal employment: the impact of triple rationing in childcare

Bidders' Entry and Auctioneer's Rejection: Applying a Double Selection Model to Road Procurement Auctions

Securities Fraud: An Economic Analysis

Contact Info

Product

Resources

About