On the calculation of marginal effects in the bivariate probit model

Christofides, Louis N.; Stengos, Thanasis; Swidinsky, Robert

doi:10.1016/s0165-1765(97)00025-6

Cited by 57 publications

(35 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…As noted in Greene (2003) and Christofides et al (1997), in a two-equation setting it is not always absolutely clear on what margins are the effects being calculated by the empirical analyst and/or estimation software. There exist more than one option in terms of choosing the margins at which effects could be calculated.…”

mentioning

confidence: 99%

Boundedly Rational Consumers, Energy and Investment Literacy, and the Display of Information on Household Appliances

2016

View full text Add to dashboard Cite

It is an ongoing debate how to increase the adoption of energy-efficient light bulbs and household appliances in the presence of the so-called 'energy efficiency gap'. One measure to support consumers' decision-making towards the purchase of more efficient appliances is the display of energy-related information in the form of energy-efficiency labels on electric consumer products. Another measure is to educate the consumers in order to increase their level of energy and investment literacy. Thus, two questions arise when it comes to the display of energy-related information on appliances: (1) What kind of information should be displayed to enable consumers to make rational and efficient choices? (2) What abilities and prior knowledge do consumers need to have to be able to process this information? In this paper, using a series of recursive bivariate probit models and three samples of 583, 877 and 1, 375 Swiss households from three major Swiss urban areas, we show how displaying information on the future energy consumption of electrical appliances in monetary terms, i.e. as an estimate of yearly energy cost (CHF) rather than in physical units (kWh), increases the probability that an individual performs an investment analysis and hence chooses the most (cost-)efficient appliance. In addition, our econometric results suggest that individuals with a higher level of energy and, in particular, investment literacy are more likely to perform an optimization rather than relying on a decision-making heuristic and are more likely to identify the most (cost-)efficient appliance. Keywords: energy-efficiency, bounded rationality, energy-using durables, information, energy label, energy literacy, choice experiment JEL Classification Codes: D12, D80, Q41, Q48 * We are grateful to the Bundesamt für Energie (BFE) for financial support. BFE was not responsible for the study design, the collection, analysis and interpretation of data or in the writing of this report. The content does not necessarily represent the official views of BFE. All omissions and remaining errors are our responsibility. Furthermore, we would like to thank the cooperating utilities who sent out invitations to their customers to participate in our household survey. †

show abstract

mentioning

confidence: 99%

Boundedly Rational Consumers, Energy and Investment Literacy, and the Display of Information on Household Appliances

2016

View full text Add to dashboard Cite

show abstract

“…The marginal effects in Table 4 represent the sum of the direct and indirect changes of the probability of migrating or continuing in a PhD track resulting from a unit change in the explanatory variable. The marginal effects on the migration and PhD decisions can be interpreted as (quasi-)elasticities evaluated at the means of the explanatory variables (Greene 1996;Christofides et al , 2000. The dummy variables are set to one instead of zero to calculate the marginal effects.…”

Section: Estimation Resultsmentioning

confidence: 99%

Ability, Academic Climate, and Going Abroad for Work or Pursuing a PhD

Bertrand-Cloodt¹,

Cörvers²,

Heijke³

2016

CESifo Economic Studies

View full text Add to dashboard Cite

Ability, academic climate, and going abroad for work or pursuing a PhD** We investigate whether a creaming off of highly able students from Dutch universities is taking place. Therefore, we examine the relation between ability and the destination of recent graduates of Dutch universities. Students can choose to continue their academic career by investing in a PhD degree instead of working, taking into account that both options can be realized in the Netherlands as well as abroad. We also investigate whether these choices are affected by the climate in certain fields of study and universities. Using a data set of workers and PhD students who recently graduated from Dutch universities two probit equations are estimated simultaneously, one for the migration decision and one for the choice between working and pursuing a PhD. Our findings indicate that highly able graduates are significantly more likely than average graduates to go abroad. They invest more often in a PhD programme, which is positively correlated with their likelihood to go abroad. In addition, the climate promoting going abroad and starting PhD study is shown to have positive effects on the odds of going abroad and participating in a PhD programme. This particularly holds for the highly able.JEL classification: F22, I23

show abstract

“…Based on bivariate probit regression, we estimate and report the average marginal effects of covariates on the joint probabilities of different transition outcomes (see Christofides et al 1997Christofides et al , 2000Greene 2012). With regard to the two binary variables of interest to this study, there are four possible combinations of transition outcomes.…”

Section: Methodsmentioning

confidence: 99%