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I developed a conditional logit model in Stata. The model is good and the variables are highly significant. Then I do mfx predicted (PU0) to determine the marginal effects of variables $\frac{dy}{dx}$. The problem is when I get the table of the marginal effects of variables in Stata: the significance of the variables becomes very small and insignificant. Why and therefore I can comment or not the marginal effects?

Example coefficients of smoker 0.6666 and the significance P value 0.000 but when I put mfx compute to have $\frac{dy}{dx}$ smoker marginal effect is 1.2 and significance is $p= 0.521$.

Andy
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  • I got the same problem with you now. I'm using the Ordered Logit model and all independent variable are insignificant when i calculate Marginal effect by the command "mfx compute, nodiscrete". I'm not sure if this is correct command. If you got the answer why, please also share it to me. Many thanks in advance! –  Nov 18 '13 at 09:24
  • Are you using many dummies in your model? The multicolinearity is harming your model. Being parsimonious would help. Best –  Nov 30 '13 at 11:28
  • There are some threads on the Stata list which touch upon that topic, e.g. http://www.stata.com/statalist/archive/2008-10/msg01122.html. – non-numeric_argument Oct 29 '14 at 22:35

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