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A comparison of two common approaches for estimating marginal effects in binary choice models

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  • Jeremy Verlinda

Abstract

Two approaches for estimating marginal effects are examined: conditioning on sample means and averaging across observations. The difference between the two quantities are signed and it is found that the magnitude increases with both the slope parameters and the covariates' variability.

Suggested Citation

  • Jeremy Verlinda, 2006. "A comparison of two common approaches for estimating marginal effects in binary choice models," Applied Economics Letters, Taylor & Francis Journals, vol. 13(2), pages 77-80.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:2:p:77-80
    DOI: 10.1080/13504850500392149
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    References listed on IDEAS

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    1. John Cawley & Karen Conneely & James Heckman & Edward Vytlacil, 1996. "Cognitive Ability, Wages, and Meritocracy," NBER Working Papers 5645, National Bureau of Economic Research, Inc.
    2. Cawley, John & Heckman, James & Vytlacil, Edward, 2001. "Three observations on wages and measured cognitive ability," Labour Economics, Elsevier, vol. 8(4), pages 419-442, September.
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    Cited by:

    1. Asgharian, Hossein & Liu, Lu & Lundtofte, Frederik, 2014. "Institutional Quality, Trust and Stock-Market Participation: Learning to Forget," Working Papers 2014:39, Lund University, Department of Economics.
    2. Ivan Jeliazkov & Angela Vossmeyer, 2018. "The impact of estimation uncertainty on covariate effects in nonlinear models," Statistical Papers, Springer, vol. 59(3), pages 1031-1042, September.
    3. Alpaslan Akay & Elias Tsakas, 2008. "Asymptotic bias reduction for a conditional marginal effects estimator in sample selection models," Applied Economics, Taylor & Francis Journals, vol. 40(24), pages 3101-3110.
    4. Fotios Pasiouras & Chrysovalantis Gaganis & Constantin Zopounidis, 2008. "Regulations, Supervision Approaches and Acquisition Likelihood in the Asian Banking Industry," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 15(2), pages 135-154, June.
    5. E. Onukwugha & J. Bergtold & R. Jain, 2015. "A Primer on Marginal Effects—Part II: Health Services Research Applications," PharmacoEconomics, Springer, vol. 33(2), pages 97-103, February.

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