Munich Personal RePEc Archive

Bridging logistic and OLS regression

Kapsalis, Constantine (2010): Bridging logistic and OLS regression.


Download (109kB) | Preview


There is broad consensus that logistic regression is superior to ordinary least squares (OLS) regression at predicting the probability of an event. However, OLS is still widely used in binary choice models, mainly because OLS coefficients are more intuitive than logistic coefficients. This paper shows a simple way of calculating linear probability coefficients (LPC), similar in nature to OLS coefficients, from logistic coefficients. It also shows that OLS coefficients tend to be very close to logistic LPC coefficients.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.