ables are provided in the final column of Table 2 .
In interpreting the results of the probit model, a
. positive negative sign for an explanatory vari-
. able indicates an increase decrease in the likeli-
hood that time wage is used by the forest com-
pany to reward silvicultural workers. However, in
the ordered probit model, the signs of the coef-
ficients must be interpreted with caution, bearing
in mind that the coding of the dependent variable
indicates only an order or ranking see Maddala,
.
2
1983; Greene, 1993 . Based on the x statistics at
the given level of significance, the ordered probit
model provides a better explanation than does
the probit model. In general, however, the results
from both models conform to the transaction cost
economic theory.