I ran a logit model, lhs is risk tolerance (=1 if respondent willing to take high risk; =0 otherwise), rhs are demographic factors such as age, generation, year, ... then I used mfx command to show marginal effect. For example, the marginal effect for generation Y was 0.0166503* (5% significant), then my interpretation was "Each respondents belonging to the Y generation decreased the likelihood of reporting risk tolerance by 1.66 per cent." I was told that my interpretation was wrong but I couldn't manage to find where.
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Felix Bittmann Thank you for your help, I will consider changing the margin command
Chris Boudreaux Yes yes, that's also my struggle. I collected data of respondents from 5 generations (Y, X, Silent, Baby Boomer and GI) and included them all to Stata by generating 1 dummy variable for each generation. Then I used "logit ...." command and Stata automatically omitted 1 generation (GI). Could you be more specific on the "reference category", like how should I interpret the effect relative to the omitted baseline?
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