CODEWITHSUNDEEP
rmarginsplm
rooftopprofessor
rooftopprofessor

Reputation: 11

Margins for PLM Models

I understand that this question was asked multiple times, but none received a satisfying answer. I am quite new to using R (transitioning from Stata) and I would like to know whether marginal effect calculation is possible for plm model?

If not, how do you go about this issue to calculate marginal effect? One thought I had is to use lm model and include factor("group_id") and factor("year"). However, it really isn't a feasible solution given the large sample size (cannot allocate vector of enough size) to run the code.

I am hesitant to use Stata just for the margins and margins plot command. Any help would be appreciated.

Thanks.

Upvotes: 1

Views: 840

Answers (1)

Vincent
Vincent

Reputation: 17823

The marginaleffects package can compute marginal effects for many, but not all, the models produced by plm. (Disclaimer: I am the maintainer.)

library(plm)
library(marginaleffects)
data(Grunfeld)

mod <- plm(inv ~ value * capital, data = Grunfeld, model = "random", effect = "individual")

mfx <- marginaleffects(mod, type = "probs")

summary(mfx)

## Average marginal effects 
##    type    Term  Effect Std. Error z value   Pr(>|z|)   2.5 % 97.5 %
## 1 probs capital 0.13812   0.022647   6.099 1.0688e-09 0.09373 0.1825
## 2 probs   value 0.08996   0.009234   9.743 < 2.22e-16 0.07187 0.1081
## 
## Model type:  plm 
## Prediction type:  probs

Upvotes: 1

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