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Thread: Probit regression - Interpretation of marginal effects of IVs in log/percentage form

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    Question Probit regression - Interpretation of marginal effects of IVs in log/percentage form




    Dear talkstats-community,

    I already spent hours on websearch for an answer on a question I have regarding the interpretation of marginal effects (at means) of probit regressions.
    How can I explicitly interpret a marginal effect of a variable that enters in

    1) logarithmized form (eg. monthly turnover (log))
    2) in form of a percentage? (eg. profit share)

    I would be very thankful for your help or an example.

    Best
    M.

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    Re: Probit regression - Interpretation of marginal effects of IVs in log/percentage f


    I would think that you can interpret marginal effects (at means) as:
    1) Change in probability of succes as a result a 1% change in monthly turnover...
    2) Change in probability of succes as a result of a one percentage point change in profit share...
    Last edited by JesperHP; 07-04-2014 at 11:55 AM.

  3. The Following User Says Thank You to JesperHP For This Useful Post:

    MSCBUS (07-05-2014)

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