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
References: Add references at CitEc
Citations: View citations in EconPapers (27)
Downloads: (external link)
https://ageconsearch.umn.edu/record/10631/files/dp030038.pdf (application/pdf)
Related works:
Journal Article: Simplified marginal effects in discrete choice models (2003) 
Working Paper: Simplified Marginal Effects in Discrete Choice Models (2003) 
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:ags:rffdps:10631
DOI: 10.22004/ag.econ.10631
Access Statistics for this paper
More papers in Discussion Papers from Resources for the Future Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().