USING A MULTINOMIAL LOGIT-SPECIFICATION TO MODEL-2 INTERDEPENDENT PROCESSES WITH AN EMPIRICAL APPLICATION

Theories in sociology and other social sciences often postulate recipr ocal causal relationships. Yamaguchi advaced a model for the interdepe ndence of two discrete-time, discrete-state endogenous processes. The Yamaguchi model is introduced with a discussion of its advantages over conventional methods and a comparison with recently developed relevan t models To overcome the obstacle that existing statistical software c annot directly estimate the Yamaguchi model the author has developed a method that converts estimated parameters from standard multinomial l egit estimation into parameters of the Yamaguchi model. This method ma kes it possible and easier for researchers to estimate the Yamaguchi m odel using standard statistical software and a simple programming of l inear transformation. The method is simple and straightforward and thu s merits application to an analysis of interdependence with panel darn . This article also provides a detailed empirical example to illustrat e an application of the method.