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frame_dummy
2011 Mar 28
0
glm: calculating average marginal effects for dummies
...een
given as
AME_cont = 1/n * SUM(beta_{cont} * prob(Y)* 1-prob(Y))
This seems easy enough to calculate with R.
However, the predictors I'm interested in are dummy variables, not
continuous, and the following formula has been suggested for
estimating the average marginal effect for dummies:
AME_dummy = 1/n*SUM(prob(Y| dummy=1) - prob(Y|dummy=0))
So according to this formula, the dummy is set to one and then to zero
for each observation (with the rest of the variables set at their
observed values), and the difference in the predicted values are
averaged across all observations.
So here's m...