Article ID Journal Published Year Pages File Type
5062676 Economics Letters 2006 4 Pages PDF
Abstract

The paper demonstrates that one's choice of threshold for post-estimation prediction in the conventional parametric binary response regression model is not arbitrary. Under the minimum mean-squared discrete prediction error criterion, the optimal threshold is shown to be 1 / 2.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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