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Re: st: how to write model equation for probit with cluster


From   "Laura R." <[email protected]>
To   [email protected]
Subject   Re: st: how to write model equation for probit with cluster
Date   Tue, 15 Feb 2011 13:06:27 +0100

Ok, thanks, Maarten.

2011/2/12 Maarten buis <[email protected]>:
> --- On Sat, 12/2/11, Laura R. wrote:
>> I estimated a probit equation in stata with the option
>> -cluster-, like this:
>>
>> probit depvar indepvar1 indepvar2 ..., cluster(clustervar)
>>
>> Usually, you can write the formula for probit models in the
>> paper something like this:
>>
>> Pr(Y=1|observed var)= "cdf sign" (bX1+bX2+e)
>>
>> However, I am wondering how to insert the option for
>> cluster into this formula.
>
> You should not include the e (I assume error term) in these
> models. The error terms is already included in the probability.
>
> Compare this with linear regression, either you say:
>
> y = bx1 + bx2 + e
>
> or:
>
> E(y) = bx1 + bx2
>
> but not:
>
> E(y) = bx1 + bx2 + e
>
> Other than that, you can use the same formula for model with
> clustered standard errors, as this formula only represents
> the relationship between the mean/probabilty and the explanatory
> variables.
>
> Hope this helps,
> Maarten
>
> --------------------------
> Maarten L. Buis
> Institut fuer Soziologie
> Universitaet Tuebingen
> Wilhelmstrasse 36
> 72074 Tuebingen
> Germany
>
> http://www.maartenbuis.nl
> --------------------------
>
>
>
>
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