Simplified Marginal Effects in Discrete Choice Models

Soren Anderson and Richard Newell

No 10631, Discussion Papers from Resources for the Future

Abstract: We show that after a simple normalization of explanatory variables so that they equal zero at some desired reference point, marginal effects for continuous variables in probit and logit models simplify dramatically, becoming a function of only the estimated constant term. We present similar simplifications for computation of the asymptotic variance of marginal effects, as well as for the effects of dummy variables on predicted probabilities. We provide a simple table, which in combination with raw probit or logit estimates, is all one needs to compute the desired effects.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Pages: 12
Date: 2003
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Citations: View citations in EconPapers (27)

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Related works:
Journal Article: Simplified marginal effects in discrete choice models (2003)
Working Paper: Simplified Marginal Effects in Discrete Choice Models (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rffdps:10631

DOI: 10.22004/ag.econ.10631

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