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  • Marginal effects at representative values

    Dear all,

    I am working with Stata's margins command and have some difficulties to interpret the meaning of "marginal effects at representative values".
    If I understand it correctly, I specify or fix a covariate at certain values and the others remain as observed.
    Stata returns the marginal effects for a chosen variable. So what I mean is, if fix the value of X1 at different values and look at the marginal effect of X2. Is this marginal effect an average marginal effect or how can I interpret? So the rate of difference in the probability of y, averaged over all observations, given my fixed representative values in one variable and the others as observed?

    Thanks a lot for your help

    Daniel






    Last edited by Daniel Allam; 30 Jul 2021, 06:31.

  • #2
    This might be helpful:

    https://www3.nd.edu/~rwilliam/xsoc73994/Margins01.pdf

    Also,

    https://www3.nd.edu/~rwilliam/xsoc73994/Margins03.pdf

    https://www3.nd.edu/~rwilliam/xsoc73994/Margins04.pdf
    -------------------------------------------
    Richard Williams, Notre Dame Dept of Sociology
    Stata Version: 17.0 MP (2 processor)

    EMAIL: [email protected]
    WWW: https://www3.nd.edu/~rwilliam

    Comment


    • #3
      Richard Williams Thank you very much!
      On slide 40 you mention:" Earlier, the AME for black was 4 percent, i.e. on average blacks’ probability of having diabetes is 4 percentage points higher than it is for whites".

      In the next bullet point you say "But, when we estimate marginal effects for different ages, we see that the effect of black differs greatly by age. It is less than 1 percentage point for 20 year olds and almost 9 percentage points for those aged 70."
      My question is, does this second statement were you look at the marginal effect of black for different ages, still refer to an average marginal effect?

      Comment


      • #4
        The overall AME is 4%. What I then refer to is Marginal Effects at Representative values. (Also see the heading on slide 39.)

        If I wanted to be a little more precise, I suppose I could say Average Marginal Effects at Representative values.
        -------------------------------------------
        Richard Williams, Notre Dame Dept of Sociology
        Stata Version: 17.0 MP (2 processor)

        EMAIL: [email protected]
        WWW: https://www3.nd.edu/~rwilliam

        Comment

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