Marginal effects and their differences in binary regressions using the delta me > thod for inference
_grmargd [if exp] [in range] [, x(variables_and_values) rest(stat) nobase all level(#) save diff dydxmat(matrix_kxk)]
where variables_and_values is an alternating list of variables and either numeric values or mean, median, min, max, upper, lower, previous.
stat is either mean, median, min, max, upper, lower, previous, grmean(group mean), mrmedian, grmin, grmax.
Description
After estimating a binary regression model, _grmargd computes the predicted marginal effects at specific values of the independent variables, or differences in marginal effects at two different x vectors. confidence intervals are available using the delta method with closed form analytic solutions. This low utility program also provides retued matrices (see below).
Options
save saves current values of independent variables and predictions (marginal effects) for computing changes using the diff option.
diff computes difference between current predictions (marginal effects) and those that were saved.
level() sets the level of the confidence interval for predicted values or marginal effects for the commands for which these are provided. The default is 95.
x() sets the values of independent variables for calculating predicted values. The list must alternate variable names and values. The values may be either numeric values or can be mean, median, min, max, previous, upper, or lower. The latter cannot be used if rest() specifies a group summary statistic (e.g., grmean).
rest() sets the independent variables not specified in x() to their mean (default), minimum, maximum, median when calculating predicted values. grmean sets these independent variables to the mean conditional on the variables and values specified in x(); grmedian,grmax, and grmin can also be used.
nobase suppresses inclusion of the base values of x in the output.
all specifies that any calculations of means, medians, etc., should use the entire sample instead of the sample used to estimate the model.
dydxmat(matrix_kxk) supplies a matrix by users of dy/dx or dxb/dx, where there is polynomial or interaction terms.
Returned Matrices
r(marg): saves marginal effects.
r(margci): saves confidence intervals for marginal effects
r(margvar): saves variance-covariance matrix for marginal effects
r(margse): saves standard errors for marginal effects
r(dmarg): saves differences in marginal effects when diff option is used
r(dmargci): saves confidence intervals for differences in marginal effects when diff option is used.
Examples
To compute the predicted marginal effects and confidence intervals using delta method for a logit in which all independent variables are held at the mean.
.logit vote black educ income
._grmargd, x(black=1 educ=16) save
._grmargd, x(black=0 educ=16) diff
What if there is interaction terms or polynomial terms? Here is an example.
.gen age2=age*age
.logit lfp age age2 k5 inc
._grmargd, x(age=20 age2=400) dydxmat(1, 20, 0, 0, 0 \ 0, 1, 0, 0, 0 \ 0, 0, 1, 0, 0 \ 0, 0, 0, 1, 0 \ 0, 0, 0, 0, 1)
:::
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Authors: Jun Xu