IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v26y2019i2p116-123.html
   My bibliography  Save this article

Random effects probit and logit: understanding predictions and marginal effects

Author

Listed:
  • James R. Bland
  • Amanda C. Cook

Abstract

Random effects probit and logit are nonlinear models, so we need predicted probabilities and marginal effects to communicate the economic significance of results. In these calculations, how one treats the individual-specific error term matters. Should one (i) set them equal to zero or (ii) integrate them out? We argue that (ii) is the quantity that most readers would expect to see. We discuss these in the context of the statistical package Stata, which changed its default predictions from (i) to (ii) in version 14. In Appendix 5, we illustrate how to calculate predictions and marginal effects using method (ii) in Stata 13 and earlier.

Suggested Citation

  • James R. Bland & Amanda C. Cook, 2019. "Random effects probit and logit: understanding predictions and marginal effects," Applied Economics Letters, Taylor & Francis Journals, vol. 26(2), pages 116-123, January.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:2:p:116-123
    DOI: 10.1080/13504851.2018.1441498
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2018.1441498
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2018.1441498?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Uwe Jirjahn & Thi Xuan Thu Le, 2024. "Political spillovers of workplace democracy in Germany," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 5-31, March.
    2. Richard Kouamé Moussa, 2019. "Heteroskedasticity in One-Way Error Component Probit Models," Econometrics, MDPI, vol. 7(3), pages 1-22, August.
    3. Marissa M Rurka & J Jill Suitor & Megan Gilligan & Robert T Frase & Zhen Cong, 2023. "How Do Own and Siblings’ Genders Shape Caregivers’ Risk of Perceiving Care-Related Criticism From Siblings?," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 78(3), pages 520-531.
    4. Ian J. Rickard & Colin Vullioud & François Rousset & Erik Postma & Samuli Helle & Virpi Lummaa & Ritva Kylli & Jenni E. Pettay & Eivin Røskaft & Gine R. Skjærvø & Charlotte Störmer & Eckart Voland & D, 2022. "Mothers with higher twinning propensity had lower fertility in pre-industrial Europe," Nature Communications, Nature, vol. 13(1), pages 1-12, December.
    5. Steele, Fiona & Zhang, Siliang & Grundy, Emily & Burchardt, Tania, 2024. "Longitudinal analysis of exchanges of support between parents and children in the UK," LSE Research Online Documents on Economics 119908, London School of Economics and Political Science, LSE Library.
    6. Elisé Wendlassida Miningou, 2022. "External debt, fiscal consolidation, and government expenditure on education," Cahiers de recherche 22-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:26:y:2019:i:2:p:116-123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.