Interpreting logit models

Abstract

The parameters of logit models are typically difficult to interpret, and the applied literature is replete with interpretive and computational mistakes. In this article, I review a menu of options to interpret the results of logistic regressions correctly and effectively using Stata. I consider marginal effects, partial effects, (contrasts of) predictive margins, elasticities, and odds and risk ratios. I also show that interaction terms are typically easier to interpret in practice than implied by the recent literature on this topic.