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Simplified marginal effects in discrete choice models Export

by: S. Anderson, R. G. Newell
Economics Letters (December 2003), pp. 321-326.

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logit probit

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We show that with a simple normalization of explanatory variables, marginal effects in probit and logit models simplify dramatically, becoming a function of only the estimated constant term. Related simplifications hold for computation of asymptotic variances of these effects.


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