Consistent estimation of the fixed effects ordered logit model

Baetschmann, Gregori; Staub, Kevin E.; Winkelmann, Rainer (2015). Consistent estimation of the fixed effects ordered logit model. Journal of the Royal Statistical Society. Series A, Statistics in Society, 178(3), pp. 685-703. Wiley-Blackwell 10.1111/rssa.12090

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The paper considers panel data methods for estimating ordered logit models with individual-specific correlated unobserved heterogeneity. We show that a popular approach is inconsistent, whereas some consistent and efficient estimators are available, including minimum distance and generalized method-of-moment estimators. A Monte Carlo study reveals the good properties of an alternative estimator that has not been considered in econometric applications before, is simple to implement and almost as efficient. An illustrative application based on data from the German Socio-Economic Panel confirms the large negative effect of unemployment on life satisfaction that has been found in the previous literature.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Social Sciences > Institute of Sociology

UniBE Contributor:

Baetschmann, Gregori

Subjects:

300 Social sciences, sociology & anthropology

ISSN:

0964-1998

Publisher:

Wiley-Blackwell

Language:

English

Submitter:

Mahboob Hasan

Date Deposited:

19 Aug 2015 17:06

Last Modified:

09 May 2016 10:17

Publisher DOI:

10.1111/rssa.12090

Uncontrolled Keywords:

Fixed effects; Logistic regression; Ordered response data; Panel data; Plant closures; Subjective wellbeing; Unemployment

BORIS DOI:

10.7892/boris.70989

URI:

https://boris.unibe.ch/id/eprint/70989

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