Logit/Probit with numbers different than 0 or 1? I am trying to find an econometric model that helps me to answer the following. I would like to measure how much the increase in the cost of a production factor (my X) shifts the supply curve of a market &quot;A&quot; (my Y). That is, I want to regress Y on X. I have daily data of the supply curve (the pairs Price, Quantity) and the daily cost of the factor. As a first step, I calculated a dummy variable that takes the value 1 if in day t there was a shift to the left with respect to t-1. Then I calculated the variable that measures the displacement if there was a shift (my Y). Which econometric model could I use since Logit and Probit only apply when the variables are 0 or 1, but in this case, I want to know how much the curve moves? Should I take a subsample of all the dummies that are equal to 1 and work with that? I don't think this is the best answer.
Thanks in advance!
I don't see how Logit/Probit models are relevant here. They are designed to estimate conditional probabilities, not what you describe.
It appears you postulate a relation
$$S = f(P, C)$$
namely supply being a function of price and cost, and where you treat price as a &quot;control&quot; This could be written as a linear regression model, as a first-order approximation. Why don't you think estimating that model?