scholarly journals Selection Bias in Linear Regression, Logit and Probit Models

1989 ◽  
Vol 18 (2-3) ◽  
pp. 360-390 ◽  
Author(s):  
JEFFREY A. DUBIN ◽  
DOUGLAS RIVERS
2017 ◽  
Vol 21 (5) ◽  
pp. 997-1018 ◽  
Author(s):  
Arunabha Mukhopadhyay ◽  
Samir Chatterjee ◽  
Kallol K. Bagchi ◽  
Peteer J. Kirs ◽  
Girja K. Shukla

2012 ◽  
Vol 02 (09) ◽  
pp. 38-46
Author(s):  
Khalili Araghi Maryam ◽  
Makvandi Sara

Simultaneous with extensive environmental changes and the rapid development of technology which has increasingly accelerated economy, competitiveness economical enterprises have restricted earning profit and make probable closing of bankrupt firms. Thus it seems necessary to find a model that can predict financial crisis and bankruptcy of companies. Nowadays occurrence of significant progress in other sciences, such as computer and math attract the attention of the financial scholars toward designing and using more exact patterns like Data Envelopment Analysis (DEA). For this purpose, this study uses DEA technique to predict the bankruptcy likelihood of manufacturing firms and also compare its predictability with2 methods : Logit and Probit models. Study sample includes all manufacturing firms listed in Stock Exchange of Tehran from 2000-2010. The results showed that the accuracy of the designed model under DEA technique is %72 and the predictability of Logit and Probit models has been81, and %80 respectively. The results also showed DEA was proved to be an effective tool for predicting bankruptcy likelihood of manufacturing firms; but,it acted less efficient than Logit and Probit models.


2020 ◽  
Vol 30 (1) ◽  
pp. 49-58
Author(s):  
Rute Q. de Faria ◽  
Amanda R. P. dos Santos ◽  
Deoclecio J. Amorim ◽  
Renato F. Cantão ◽  
Edvaldo A. A. da Silva ◽  
...  

AbstractThe prediction of seed longevity (P50) is traditionally performed by the use of the Probit model. However, due to the fact that the survival data are of binary origin (0,1), the fit of the model can be compromised by the non-normality of the residues. Consequently, this leads to prediction losses, despite the data being partially smoothed by Probit and Logit models. A possibility to reduce the effect of non-normality of the data would be to apply the principles of the central limit theorem, which states that non-normal residues tend to be normal as the n sample is increased. The Logit and Probit models differ in their normal and logistic distribution. Therefore, we developed a new estimation procedure by using a small increase of the n sample and tested it in the Probit and Logit functions to improve the prediction of P50. The results showed that the calculation of P50 by increasing the n samples from 4 to 6 replicates improved the index of correctness of the prediction. The Logit model presented better performance when compared with the Probit model, indicating that the estimation of P50 is more adequate when the adjustment of the data is performed by the Logit function.


2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Trang Quynh Nguyen ◽  
Allan Dafoe ◽  
Elizabeth L. Ogburn

AbstractSuppose we are interested in the effect of variableXon variableY. IfXandYboth influence, or are associated with variables that influence, a common outcome, called acollider, then conditioning on the collider (or on a variable influenced by the collider – its “child”) induces a spurious association betweenXandY, which is known as collider bias. Characterizing the magnitude and direction of collider bias is crucial for understanding the implications of selection bias and for adjudicating decisions about whether to control for variables that are known to be associated with both exposure and outcome but could be either confounders or colliders. Considering a class of situations where all variables are binary, and whereXandYeither are, or are respectively influenced by, two marginally independent causes of a collider, we derive collider bias that results from (i) conditioning on specific levels of the collider or its child (on the covariance, risk difference, and in two cases odds ratio, scales), or (ii) linear regression adjustment for, the collider or its child. We also derive simple conditions that determine the sign of such bias.


2013 ◽  
Vol 42 (2) ◽  
pp. 164-191 ◽  
Author(s):  
Richard Breen ◽  
Kristian Bernt Karlson ◽  
Anders Holm

Author(s):  
Marcela A. Munizaga ◽  
Ricardo Alvarez-Daziano

Discrete choice models with error structures that are not independent and identically distributed have received enormous attention in the recent literature. A detailed synthetic study tests this type of model in a controlled case. With mixed logit and probit models as the study objects, calibration was implemented with the use of software available on the Internet. The controlled situation was built as a simulation laboratory, which generated databases with known parameters. The effects of various elements were analyzed: number of repetitions of the simulation, number of observations in the database, and how the use of Halton sequences improves the mixed logit calibration. The scale effects on the different models are also discussed. The results obtained in this specific context lead to some recommendations for future users of these powerful modeling tools. In particular, flexible structures require large sample sizes to calibrate the elements of the covariance matrix.


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