Bridging logistic and OLS regression

Constantine Kapsalis

MPRA Paper from University Library of Munich, Germany

Abstract: There is broad consensus that logistic regression is superior to ordinary least squares (OLS) regression at predicting the probability of an event. However, OLS is still widely used in binary choice models, mainly because OLS coefficients are more intuitive than logistic coefficients. This paper shows a simple way of calculating linear probability coefficients (LPC), similar in nature to OLS coefficients, from logistic coefficients. It also shows that OLS coefficients tend to be very close to logistic LPC coefficients.

Keywords: regression (search for similar items in EconPapers)
JEL-codes: C35 (search for similar items in EconPapers)
Date: 2010-04-28
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Related works:
Working Paper: Bridging logistic and OLS regression (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:25482

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