Hi Statalist, this is my first post so apologies if the format is wrong.
I have an explanatory variable in log format ln(income) and the dependent variable, y, is a dummy variable (and 74% of observations are y=1).
I initially use a linear probability model and the coefficient on ln(income) is 0.00875. I have interpreted this as: the probability of y=1 associated with a 1% increase in income is a 0.0000875% point increase (basically no effect)
The marginal effect at means on the probit model on ln(income) is 0.00907. I have interpreted this as: the probability of y=1 associated with a 172% increase in income is a 0.00907% point increase.
Therefore, the probability of y=1 associated with a 1% increase in income is a 0.00907/172= 0.000053% point increase (basically no effect).
I was wondering if this is the right interpretation and if so, should I just say there is no effect of household income on y=1?
Many thanks in advance, I really appreciate it.
Related Posts with Interpreting a log explanatory variable in a probit model
Running two loopsHey, I have the following problem. Let's suppose I have this data set country A B C Germany 5 6 7…
Not a numberHi, While trying to import a CSV dataset with Covid data for France, I realized there are numeric v…
Measuring the average Wage before and After movingHello Members, I have data on individuals moving across regions and I have grouped each region into…
Replacing String variables with another string variable. (String variables contain data from multi select questions)Hi. im trying to replace observations of a string variable from another string variable (Both the st…
Data mergeHi Statalist, I am new to Stata and need help to merge two data sets. The merge or by variables are…
Subscribe to:
Post Comments (Atom)
0 Response to Interpreting a log explanatory variable in a probit model
Post a Comment