Comparing linear probability model coefficients across groups

Comparing linear probability model coefficients across groups This article offers a formal identification analysis of the problem in comparing coefficients from linear probability models (LPM) between groups. We show that differences in coefficients from these models can result not only from genuine differences in effects, but also from differences in one or more of the following three components: outcome truncation, scale parameters and distributional shape of the predictor variable. These results point to limitations in using LPM coefficients for group comparisons. We also provide Monte Carlo simulations and real examples to illustrate these limitations, and we suggest a restricted approach to using LPM coefficients in-group comparisons. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Quality & Quantity Springer Journals

Comparing linear probability model coefficients across groups

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Publisher
Springer Netherlands
Copyright
Copyright © 2014 by Springer Science+Business Media Dordrecht
Subject
Social Sciences, general; Methodology of the Social Sciences; Social Sciences, general
ISSN
0033-5177
eISSN
1573-7845
D.O.I.
10.1007/s11135-014-0057-0
Publisher site
See Article on Publisher Site

Abstract

This article offers a formal identification analysis of the problem in comparing coefficients from linear probability models (LPM) between groups. We show that differences in coefficients from these models can result not only from genuine differences in effects, but also from differences in one or more of the following three components: outcome truncation, scale parameters and distributional shape of the predictor variable. These results point to limitations in using LPM coefficients for group comparisons. We also provide Monte Carlo simulations and real examples to illustrate these limitations, and we suggest a restricted approach to using LPM coefficients in-group comparisons.

Journal

Quality & QuantitySpringer Journals

Published: Jul 26, 2014

References

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