Introductory Econometrics

Excel Add-In: Dummy Dependent Variable

Warning: When you download the add-in, make sure that you save it as an ".xla" file. Internet Explorer often changes the file extension to ".xls".

This add-in, DDV.xla, enables estimation of Probit and Logit models via non-linear least squares and maximum likelihood. The add-in uses Excel's Solver to estimate the model. This is our teaching version of binary response model estimation because the student can see the optimization problem (whether it be NLLS or ML) and how Solver is used to estimate the coefficients.

Our DDV Gauss-Newton add-in is faster and more flexible. We often use the simple DDV add-in in class and DDV Gauss-Newton for student papers.

Since you must have Solver installed and working, we offer two sets of installation instructions: one for Solver and another for the add-in itself. The Solver.xls workbook is an example workbook used to explain Solver. Right-click to download the DDV.xla file when you are ready.


DDV Installation Instructions
Solver Installation Instructions