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Re: st: marginal after biprobit

From   Ayman Farahat <>
To   "" <>
Subject   Re: st: marginal after biprobit
Date   Thu, 22 Nov 2012 12:26:22 -0800 (PST)

Thanks Dimitriy 
That was very helpful. 
I have a follow up question on how to interpret the correlation coefficient (artrho, or rho)

In case when i have :
 biprobit (isclosed = myfailpricerisk lreviewnumber) (isgroupon = mygrouponziprisk mygrouponpricerisk lbrate)
The correlation measure the degree of association between the un-observed factors in equation 1 (isclosed) and equation 2 (isgroupon)
so if i have a positive and significant correlation i can conclude that the unobserved share some common  determinants . 

In second case 
 biprobit (isclosed = myfailpricerisk lreviewnumber ISGROUPON) (ISGROUPON = mygrouponziprisk mygrouponpricerisk lbrate)
how do you interpret the correlation?
I have found that the correlation switch signs from first to second case?


----- Original Message -----
From: Dimitriy V. Masterov <>
To: Statalist <>
Sent: Wednesday, November 21, 2012 5:03 PM
Subject: Re: st: marginal after biprobit


biprobit is the right command. Austin Nichols has instructions on
calculating the AME here:

There are several ways of doing it, some are better than others, but
they tend to produce similar results.


On Wed, Nov 21, 2012 at 4:47 PM, Ayman Farahat <> wrote:
> Hello ;
> I am working on a problem where the dependent variable (iscloed)  is binary and one of the regressors (isgroupon) is binary and endogenous.
> Based on advice i got from the statalist, it was suggested to use a biprobit,
> I ended up using something of the form
> biprobit (isclosed = myfailpricerisk lreviewnumber isgroupon) (isgroupon = mygrouponziprisk mygrouponpricerisk lbrate)
> A couple of questions :
> 1)  Is the biprobit the correct command?
> 2) how do i get the marginal effect of "isgroupon" on "iscolosed" ?
> Thanks
> Ayman
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