Measuring Goodness of Fit for the Double-Bounded Logit Model

The traditional approaches of measuring goodness of fit are shown to be inappropriate in the case of the double-bounded logit model. An alternate approach called the “sequential classification procedure” is presented as a possible alternative to the standard tests. The double-bounded logit model is reviewed along with the standard goodness-of-fit measures. The sequential classification procedure and its features are presented in the context of an empirical example.