# Questions tagged [logit]

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### Are standard discrete choice models based on ordinal utility or cardinal utility?

Suppose we model consumer's choice between three brands Honda(choice 1), Toyota(choice 2) and BMW(choice 3) using a standard discrete choice model, with the utility of choice $j\in\{1,2,3\}$ being ...
13 views

### Intuitively, how is a nested logit model identified?

This is an informal question. I understand that nested logit models allow flexible substitution patterns that so that substitution would be more likely within a nest than across nests. But if you only ...
57 views

### Is the linear probability model consistent with utility maximization?

We know that Logit/probit models are consistent with utility maximization in the sense that the model implied probability of choosing option $1$ equals the probability that option $1$ has larger ...
1 vote
32 views

### calculating a marginal effect for logit model

For the logit estimate of the slope parameter,I would like to obtain the marginal effect of the regressor ndisease evaluated at $\Lambda (x'\beta)=\bar{y}$, where $\bar{y}$ is mean of $y$. I obtain ...
25 views

### Why does the variable become more significant after I add mediators?

I have 2 models: without mediators and with them. In the second model the variable of interest becomes more significant (the level of significance in model 1 is 5% and in model 2 is 1%). What is a ...
1 vote
34 views

### Should I do Chi-square or T-test before running a regression?

In many articles before running a regression authors do T-test or Chi-square test to check if there’s a significant difference between the variables in 2 subsamples. In my case variable of interest - ...
1 vote
38 views

### Why does the variable become insignificant after adding mediators?

I study an impact of long working hours on health. I run ordered logit on women subsample and the dummy variable responsible for working more than 40 hours becomes insignificant after adding mediators:...
1 vote
21 views

### Can I run regression on uneven subsample?

I study the influence of long working hours on health. In my sample 40% of people work more than 40 hours and other 60% don’t. I want to look at the effect of working exactly more than 50 hours ...
134 views

### Why significant variables become insignificant in subsamples?

I built an ordered logit using a sample of more than 4000 observations and the variable of the interest was significant. But then I split the sample into two subsamples: women and men and the variable ...
1 vote
34 views

### Interpretation of multinominal logit regression (Stata)

I have a few questions about mlogit. I have a set of independent variables and a categorical, but ordered, dependent variable with three categories (Disagree, Neutral and Agree). The assumptions for ...
42 views

### Trouble Understanding the Integral Underlying Random Utility Models

Given a utility function, $U_{nj} = V_{nj} + \varepsilon_{nj}$, it makes sense that we can find the probability the decision maker $n$ chooses alternative $i$ as: Pr(U_{ni} > U_{nj} \forall j \...