\[y_m = x_b + \alpha y_w + \epsilon^m\]
\[y_w = x_b + \alpha y_m + \epsilon^w\]
where y_m is a dummy variable for husband decisions to work and vice versa for y_w.
Here is a sample of the code from the paper.
Code:
program define nash_lf version 10.0 args lnf xb1 xb2 alpha1 alpha2 rho quietly replace `lnf' = ln( binormal( -`xb1', -`xb2', `rho') – 0.5 * ( binormal( -`xb1', -`xb2', `rho' ) – binormal( -`xb1', -`xb2' -`alpha2', `rho' ) – binormal( -`xb1' - `alpha1', -`xb2', `rho' ) + binormal( -`xb1' - `alpha1', -`xb2' - `alpha2', `rho' ) ) ) if `alpha1' >= 0 & `alpha2' >= 0 & $ML_y1==0 & $ML_y2==0 ;
Source: Abbott, m.r. (2009), modelling decisions to volunteer at a household level, b.s. honors monograph, university of new south wales- school of economics
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