A COMPARISON OF BINARY LOGIT AND PROBIT MODELS WITH A SIMULATION STUDY

Selen Cakmakyapan () and Atilla Goktas ()
Additional contact information
Selen Cakmakyapan: Hacettepe University, Department of Statistics
Atilla Goktas: Mugla Sıtkı Kocman University, Department of Statistics

Journal of Social and Economic Statistics, 2013, vol. 2, issue 1, 1-17

Abstract: Logit and probit models which widely used are members of the family of generalized linear models. Particularly, when the dependent variable is binary, both models may be used for the estimation of the functional relationship between dependent and independent variables. Since those models are utilized for the same purposes, the question of which model performs better comes to the mind. For this intention, a Monte Carlo simulation was carried out to compare both the binary probit and logit models under different conditions. In data generation stage, by employing latent variable approach, different sample sizes, different cut points, and different correlations between dependent variable and independent variables were taken into account. To make a comparison between logit and probit models, residuals, deviations and different Pseudo-R squares which are used for qualitative data analysis, were calculated and the results were interpreted.

Keywords: Binary Logit Model; Binary Probit Model; Latent Variable; Monte Carlo Simulation; Pseudo R-Square (search for similar items in EconPapers)
JEL-codes: C15 C53 C63 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://jses.ase.ro/downloads/Vol2NO1/211goktas.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aes:jsesro:v:2:y:2013:i:1:p:1-17

Access Statistics for this article

Journal of Social and Economic Statistics is currently edited by Zizi Goschin

More articles in Journal of Social and Economic Statistics from Bucharest University of Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Bogdan-Vasile Ileanu ().