Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77522
Authors: 
Winkelmann, Rainer
Year of Publication: 
2011
Series/Report no.: 
Working Paper Series, Department of Economics, University of Zurich 29
Abstract: 
The bivariate probit model is frequently used for estimating the effect of an endogenous binary regressor (the treatment) on a binary health outcome variable. This paper discusses simple modifications that maintain the probit assumption for the marginal distributions while introducing non-normal dependence using copulas. In an application of the copula bivariate probit model to the effect of insurance status on the absence of ambulatory health care expenditure, a model based on the Frank copula outperforms the standard bivariate probit model.
Subjects: 
bivariate probit
binary endogenous regressor
Frank copula
Clayton copula
JEL: 
C35
I12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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