Linear probability model: Difference between revisions

Revision as of 17:12, 26 May 2015

Revision as of 03:18, 6 March 2016

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A drawback of this model is that, unless restrictions are placed on <math> \beta </math>, the estimated coefficients can imply probabilities outside the [[unit interval]] <math> [0,1] </math>. For this reason, models such as the [[logit model]] or the [[probit model]] are more commonly used.

== See also ==

* [[Logit model]]

* [[Probit model]]

== References ==

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== Further reading ==

* {{cite book |last=Amemiya |first=Takeshi |authorlink= |chapter=Qualitative Response Models |title=Advanced Econometrics |year=1985 |publisher=Basil Blackwell |___location=Oxford |isbn=0-631-13345-3 |pages=267–359 |chapterurl=https://books.google.com/books?id=0bzGQE14CwEC&pg=PA267 }}

* {{cite book |last=Wooldridge |first=Jeffrey M. |year=2013 |title=Introductory Econometrics: A Modern Approach |___location=Mason, OH |publisher=South-Western |edition=5th international |chapter=A Binary Dependent Variable: The Linear Probability Model |pages=238–243 |isbn=978-1-111-53439-4 }}