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Re: st: Re: heteroscedasticity in logit/ probit model


From   Richard Williams <[email protected]>
To   [email protected]
Subject   Re: st: Re: heteroscedasticity in logit/ probit model
Date   Wed, 24 Nov 2010 13:56:12 -0500

At 11:39 AM 11/24/2010, Maarten buis wrote:
you'll really need to do some reading. Since these models are so
sensitive, you really need to know what you are doing. A good entry
point for that literature is (Williams 2009). But my position is that
that problem is basically unsolvable, so not worth worrying about.

Hope that helps,
Maarten

Williams, R. 2009. Using heterogenous choice models to compare logit
and probit coefficients across groups. Sociological Methods & Research
37: 531--559.

Also see

http://www.nd.edu/~rwilliam/oglm/oglm_Stata.pdf

I hate to say don't worry about it; despair might be a more appropriate reaction, as the problems are potentially serious and the solutions can be problematic. I think you at least want to understand what the problems are though. The above paper also suggests that if hetero is present, you may be able to make model modifications that take care of it, much as you might in an OLS regression. There is also work that suggests these models work better with ordinal dep vars rather than binary.


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Richard Williams, Notre Dame Dept of Sociology
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