Logit and Probit Models

摘要: Statistical models in which the endogenous random variables take only discrete values are known as discrete, categorical, qualitative — choice, or quanta! response models.1 This class of was originally developed by psychologists and later adapted extended economists for describing consumers choices. These have numerous applications because many behavioural responses nature: a commuter decides whether to public transit; consumer buy car; high school student attend college; housewife participate labour force, etc. The focus these is usually on individual decision making units. estimation also facilitated availability an increasingly large number survey data households firms.