Comparing linear probability model coefficients across groups

TY - JOUR

T1 - Comparing linear probability model coefficients across groups

AU - Holm, Anders

AU - Ejrnæs, Mette

AU - Karlson, Kristian Bernt

PY - 2015/9/18

Y1 - 2015/9/18

N2 - This article offers a formal identification analysis of the problem in comparing coefficients from linear probability models (LPM) between groups. We show that differences in coefficients from these models can result not only from genuine differences in effects, but also from differences in one or more of the following three components: outcome truncation, scale parameters and distributional shape of the predictor variable. These results point to limitations in using LPM coefficients for group comparisons. We also provide Monte Carlo simulations and real examples to illustrate these limitations, and we suggest a restricted approach to using LPM coefficients in-group comparisons.

AB - This article offers a formal identification analysis of the problem in comparing coefficients from linear probability models (LPM) between groups. We show that differences in coefficients from these models can result not only from genuine differences in effects, but also from differences in one or more of the following three components: outcome truncation, scale parameters and distributional shape of the predictor variable. These results point to limitations in using LPM coefficients for group comparisons. We also provide Monte Carlo simulations and real examples to illustrate these limitations, and we suggest a restricted approach to using LPM coefficients in-group comparisons.

U2 - 10.1007/s11135-014-0057-0

DO - 10.1007/s11135-014-0057-0

M3 - Journal article

SN - 0033-5177

VL - 49

SP - 1823

EP - 1834

JO - Quality and Quantity

JF - Quality and Quantity

IS - 5

ER -