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Very simple marginal effects in some discrete choice models

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  • Kevin J. Denny

    (University College Dublin)

Abstract

I show a simple back-of-the-envelope method for calculating marginal effects in binary choice and count data models. The approach suggested here focuses attention on marginal effects at different points in the distribution of the dependent variable rather than representative points in the joint distribution of the explanatory variables. For binary models, if the mean of the dependent variable is between 0.4 and 0.6 then dividing the logit coefficient by 4 or multiplying the probit coefficient by 0.4 should be moderately accurate.

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File URL: http://www.ucd.ie/t4cms/wp09.09.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 200909.

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Length: 6 pages
Date of creation: 21 Jul 2009
Date of revision:
Handle: RePEc:ucn:wpaper:200909

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Keywords: marginal effects; binary choice; count data;

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