On the Bivariate Dichotomous Choice Model

Data set generated by teh bivariate dichotomous choice made by individuals often occurs in practice. This paper presents general model of how such data set is generated as well as methods of estimation. The M.L.E. is examined and found to be computationally burdensome. A simpler estimator, the bivariate dichotomous two-stage estimator, is suggested as an alternative. The two-stage estimator is found to be as efficient as the M.L.E.