Hostname: page-component-8448b6f56d-c47g7 Total loading time: 0 Render date: 2024-04-23T08:44:46.434Z Has data issue: false hasContentIssue false

A Statistical Model of Bilateral Cooperation

Published online by Cambridge University Press:  04 January 2017

Adam Przeworski
Affiliation:
Department of Politics, New York University, New York, NY 10003. e-mail: adam.przeworski@nyu.edu
James Raymond Vreeland
Affiliation:
Department of Political Science, Yale University, New Haven, CT 06520-8301. e-mail: james.vreeland@yale.edu

Abstract

In most situations of bilateral cooperation we can observe only whether or not potential partners actually cooperate. Yet we often want to know what factors lead the actors to enter into and continue cooperation. The model we develop—a dynamic version of bivariate probit with partial observability—permits one to estimate the probabilities that either of two parties would want to cooperate and to identify the factors that affect these probabilities. As an illustration, we focus on agreements between national governments and the International Monetary Fund. The model should have a wide applicability.

Type
Articles
Copyright
Copyright © Political Methodology Section of the American Political Science Association 2002 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abowd, John M., and Farber, Henry S. 1982. “Job Queues and the Union Status of Workers.” Industrial and Labor Relations Review 35:354367.CrossRefGoogle Scholar
Amemiya, Takeshi. 1985. Advanced Econometrics. Cambridge, MA: Harvard University Press.Google Scholar
Banks, A. S. 1996. Cross-National Time-Series Data Archive (magnetic tape). Binghamton: Center for Social Analysis, State University of New York at Binghamton.Google Scholar
Bird, Graham. 1996. “Borrowing from the IMF: The Policy Implications of Recent Empirical Research.” World Development 24:17531760.CrossRefGoogle Scholar
Dixit, Avinash K. 1996. The Making of Economic Policy: A Transaction-Cost Politics Perspective. Cambridge, MA: MIT Press.CrossRefGoogle Scholar
Edwards, Sebastian, and Santaella, Julio A. 1993. “Devaluation Controversies in the Developing Countries: Lessons from the Bretton Woods Era.” In A Retrospective on the Bretton Woods System, eds. Bordo, Michael D. and Eichengreen, Barry. Chicago: University of Chicago Press, pp. 405455.Google Scholar
Fischer, Stanley. 1999. “On the Need for an International Lender of Last Resort.” Paper prepared for delivery at the joint luncheon of the American Economic Association and the American Finance Association, New York, Jan. 3. (Available at www.imf.org.) Google Scholar
Greene, William H. 1998. LIMDEP Version 7.0 User's Manual, Revised Edition. Plainview, NY: Econometric Software.Google Scholar
Knight, Malcolm, and Santaella, Julio A. 1997. “Economic Determinants of Fund Financial Arrangements.” Journal of Development Economics 54:405436.CrossRefGoogle Scholar
Poirier, Dale J. 1980. “Partial Observability in Bivariate Probit Models.” Journal of Econometrics 12:209217.CrossRefGoogle Scholar
Przeworski, Adam, and Vreeland, James. 2000. “The Effect of IMF Programs on Economic Growth.” Journal of Development Economics 62:385421.CrossRefGoogle Scholar
Przeworski, A., Alvarez, M., Cheibub, J. A., and Limongi, F. 2000. Democracy and Development: Political Regimes and Economic Well-being in the World, 1950-1990. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Putnam, Robert D. 1988. “Diplomacy and Domestic Politics: The Logic of Two-Level Games.” International Organization 42:427460.CrossRefGoogle Scholar
Remmer, Karen L. 1986. “The Politics of Economic Stabilization, IMF Standby Programs in Latin America, 1954-1984.” Comparative Politics 19:124.CrossRefGoogle Scholar
Signorino, Curtis. 1999. “Strategic Interaction and the Statistical Analysis of International Conflict.” American Political Science Review 93:279298.CrossRefGoogle Scholar
Smith, Alastair. 1996. “To Intervene or Not to Intervene: A Biased Decision.” Journal of Conflict Resolution 40:1640.CrossRefGoogle Scholar
Smith, Alastair. 1999. “Testing Theories of Strategic Choice.” American Journal of Political Science 43:12541283.CrossRefGoogle Scholar
Spaventa, Luigi. 1983. “Two Letters of Intent: External Crises and Stabilization Policy, Italy, 1973-77.” In IMF Conditionality, ed. Williamson, John. Washington, DC: Institute for International Economics, pp. 441473.Google Scholar
Stone, Randall W. 2002. Lending Credibility: The International Monetary Fund and the Post-Communist Transition. Princeton, NJ: Princeton University Press (in press).CrossRefGoogle Scholar
Vreeland, James. 2002. The IMF and Economic Development. Cambridge: Cambridge University Press (in press).Google Scholar