@inbook{e20d2e1d79e24f7fb85408a6326fb1e4,
title = "Simultaneity in binary outcome models with an application to employment for couples",
abstract = "Two of Peter Schmidt{\textquoteright}s many contributions to econometrics have been to introduce a simultaneous logit model for bivariate binary outcomes and to study estimation of dynamic linear fixed effects panel data models using short panels. In this paper, we study a dynamic panel data version of the bivariate model introduced in Schmidt and Strauss (Econometrica 43:745–755, 1975) that allows for lagged dependent variables and fixed effects as in Ahn and Schmidt (J Econom 68:5–27, 1995). We combine a conditional likelihood approach with a method of moments approach to obtain an estimation strategy for the resulting model. We apply this estimation strategy to a simple model for the intra-household relationship in employment. Our main conclusion is that the within-household dependence in employment differs significantly by the ethnicity composition of the couple even after one allows for unobserved household specific heterogeneity.",
keywords = "Binary response, Employment, Fixed effects, Moment conditions, Simultaneity",
author = "Honor{\'e}, {Bo E.} and Luojia Hu and Ekaterini Kyriazidou and Martin Weidner",
note = "Publisher Copyright: {\textcopyright} The Author(s) 2024.",
year = "2024",
doi = "10.1007/978-3-031-48385-1_26",
language = "English (US)",
series = "Advanced Studies in Theoretical and Applied Econometrics",
publisher = "Springer Science and Business Media Deutschland GmbH",
pages = "741--777",
booktitle = "Advanced Studies in Theoretical and Applied Econometrics",
address = "Germany",
}