8 Linear probability model: Application Cattaneo, Galiani, Gertler, Martinez, and Titiunik (2009). “Housing, Health, and Happiness.” American Economic Journal: Economic Policy 1(1): 75 - 105 What was the impact of Piso Firme, a large-scale Mexican program to help families replace dirt floors with cement floors? A pledge by governor Enrique Martinez y Martinez led to State of Coahuila offering free 50m 2 of cement flooring ($150 value), starting in 2000, for homeowners with dirt floors
9 Cattaneo et al. (AEJ:Economic Policy 2009) “Housing, Health, & Happiness” X 1 = “Program dummy” = 1 if offered Piso Firme.
10 Cattaneo et al. (AEJ:Economic Policy 2009) “Housing, Health, & Happiness” Interpretations? X 1 = “Program dummy” = 1 if offered Piso Firme
26 Comparison of Marginal Effects LPMProbitLogit Marginal Effect at Means for Price Ratio -.4008 (.0613) -.4520 (.0712) via nlcom -.4905 (.0773) via nlcom Average Marginal Effect of Price Ratio -.4008 (.0613) -.4096 (beyond eco205) -.4332 (beyond eco205) Marginal Effect at Means for Coke display dummy.0771 (.0343).0856 (.0381) via nlcom.0864 (.0390) via nlcom Average Marginal Effect For Coke display dummy.0771 (.0343).0776 (beyond eco205).0763 (beyond eco205)
27 Probit model: Application Arcidiacono and Vigdor (2010). “Does the River Spill Over? Estimating the Economic Returns to Attending a Racially Diverse College.” Economic Inquiry 48(3): 537 – 557. Does “diversity capital” matter and does minority representation increase it? Does diversity improve post- graduate outcomes of non-minority students? College & Beyond survey, starting college in 1976
31 Logit model: Application Bodvarsson & Walker (2004). “Do Parental Cash Transfers Weaken Performance in College?” Economics of Education Review 23: 483 – 495. When parents pay for tuition & books does this undermine the incentive to do well? Univ of Nebraska @ Lincoln & Washburn Univ in Topeka, KS, 2001-02 academic year
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