Description Usage Arguments Details Value WARNINGS Author(s) References See Also Examples

Before fitting a bivariate probit model, `LM.bpm`

can be used to test the hypothesis of absence of endogeneity,
correlated model equations/errors
or non-random sample selection.

1 2 |

`formula` |
A list of two formulas, one for equation 1 and the other for equation 2. |

`data` |
An optional data frame, list or environment containing the variables in the model. If not found in |

`weights` |
Optional vector of prior weights to be used in fitting. |

`subset` |
Optional vector specifying a subset of observations to be used in the fitting process. |

`Model` |
It indicates the type of model to be used in the analysis. Possible values are "B" (bivariate model) and "BSS" (bivariate model with sample selection). The two marginal equations have probit links. |

`hess` |
If |

This Lagrange multiplier test (also known as score test) is used here for testing the null
hypothesis that *θ* is equal to 0 (i.e. no endogeneity, non-random sample selection or
correlated model equations/errors, depending
on the model being fitted). Its main advantage is that it does
not require an estimate of the model parameter vector under the alternative hypothesis. Asymptotically, it takes a Chi-squared distribution
with one degree of freedom. Full details can be found in Marra et al. (2014) and Marra et al. (in press).

It returns a numeric p-value corresponding to the null hypothesis that the correlation, *θ*, is equal to 0.

This test's implementation is ONLY valid for bivariate binary probit models with normal errors.

Maintainer: Giampiero Marra [email protected]

Marra G., Radice R. and Filippou P. (2017), Regression Spline Bivariate Probit Models: A Practical Approach to Testing for Exogeneity. *Communications in Statistics - Simulation and Computation*, 46(3), 2283-2298.

Marra G., Radice R. and Missiroli S. (2014), Testing the Hypothesis of Absence of Unobserved Confounding in Semiparametric Bivariate Probit Models. *Computational Statistics*, 29(3-4), 715-741.

1 | ```
## see examples for SemiParBIV
``` |

JRM documentation built on July 13, 2017, 5:03 p.m.

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