Re: st: questions about xtprobit

[David Jacobs <jacobs.184@sociology.osu.edu>]

What if one wants to control for time in a fixed-effects logit 
analysis?  Suppose I have pooled time series with panels by year and 
I want to estimate using a two-way fixed-effects design.  I 
understand that it is incorrect to use dummies for cases, but is it 
incorrect to enter separate dummies for each year in fixed-effects 
logit models?

Dave Jacobs

At 06:11 AM 12/29/2006, you wrote:

> Not sure if -xtprobit- is the best choice, (I'm not an expert, but 
> it sounds that the choice depends on what "after a certain event" 
> means, i.e. are all observations subject to the same event at the same time?).
> Turning to technical questions on Stata, to my best knowledge you 
> cannot have fixed effects for -xtprobit-. But you can use 
> CONDITIONAL fixed effects for -xtlogit-. Remember that you cannot 
> use dummies to estimate logistic fixed effects (Hsiao 1986). You can 
> have exponentiated coefficients (odds ratio indicating the 
> percentage change in the probability of the outcome (the dependent 
> variable = 1) given a one unit change in the independent variable) 
> with option -or-.
> Nicola
>
> At 02.33 24/12/2006 -0500, you wrote:
> >Hi all,
> >
> >For my nmaster degree thesis, I have data on firms borrowing from many
> >sources as shown below. I am trying to run probit model to see how
> >likely it is that firm will have better access to finance (to
> >different sources e.g. banks, bond market) after a certain event. With
> >the data structure below, I want to control for firm's characteristic
> >too.
> >
> >firmid financesource    improveaccesstoloan          x1
> >1            1                         1                               8
> >1            2                         0                               8
> >1            3                         1                               8
> >
> >where x1 = indepedent variable capturing firm characteristics for each
> >firm.
> >I am thinking about using xtprobit for the following model:
> >
> >prob of improving access = financesourcedummies + x1+ x2+.....
> >
> >Is xtprobit the right command to use?
> >Can I use fixed effects with xtprobit?
> >I tried it and getting coefficient greater than 1. how do I obtain the
> >correct marginal effects on probability?
>
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