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Very simple marginal effects in some discrete choice models


  • Kevin Denny


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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  • Kevin Denny, 2009. "Very simple marginal effects in some discrete choice models," Working Papers 200909, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:200909

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    Marginal effects; Binary choice; Count data; Mathematical models; Mathematical statistics;

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