Hi,
I need to calculate the elasticity after using xtprobit (RE probit). If
I use "mfx compute, eyex", it yields an error. So I tried "mfx compute,
predict (pu0) eyex" and it yielded some output. Is this the correct way
of computing the elasticity? Also, can I get that elasticity from the
marginal effects table by multiplying the marginal effect for each
variable by the mean of the variable and dividing by the overall
probability that y=1? In other words, is the
elasticity=(d(Pr(y=1))/dx)*(xbar/avgPr(y=1))?
I've tried doing it, and while the numbers are close, they're not
exactly identical, so just wanted to be certain that that is how it
would be computed.
Aparna
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