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In my regression both dependent and independent variable is dichotomous, here am I using LPM or...

In my regression both dependent and independent variable is dichotomous, here am I using LPM or logit model to solve this regression?????

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Answer #1

The more appropriate model is the Logit model for dichotomous variables. Traditionally, the Logit model is used in cases like these.

The LPM model has a disadvantage that the probability doesn't lie in the range 0 to 1, which makes estimates unreliable.

However, the situation and correct analysis depends on the data set in hand. Logit model would be used generally.

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