I am performing a Logit Model on binary variable SALE, when running on stata some of my explanatory variables were dropped as they were "perfect predictors". after some reading i believe the problem to be that of separation. some authors propose Firths method to deal with this. I can install the stata extension and run the tests again no problem but i want to know:
- will this work for a relatively small dataset (n=207)?
- are there any downsides to this approach? (bias or overstatement of errors, anything like that)