Consistent Estimation of the Fixed Effects Ordered Logit Model
Copyright policy )Consistent Estimation of the Fixed Effects Ordered Logit Model
SummaryThe 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.
- University of Melbourne Australia
- Centre for Economic Policy Research United Kingdom
- Institute for the Study of Labor Germany
- University of Zurich Switzerland
unemployment, Logit-Modell, J28, correlated heterogeneity, plant closures, 3301 Social Sciences (miscellaneous), ordered response, panel data, correlated heterogeneity, incidental parameters, Schätztheorie, 2002 Economics and Econometrics, Arbeitslosigkeit, Monte-Carlo-Methode, Modell, Applications of statistics, panel data, ECON Department of Economics, Ordered response, 10007 Department of Economics, Schweiz, Heterogenität, 1804 Statistics, Probability and Uncertainty, 2613 Statistics and Probability, Deutschland, incidental parameters, Panelanalyse, fixed effects, ddc:330, logistic regression, Stochastik, Konsistenz, Zufriedenheit, 330 Economics, subjective wellbeing, ordered response data, Logit, ordered response, Panel, C25, J64, Theorie, C23, Schätzung, jel: jel:C23, jel: jel:J64, jel: jel:C25, jel: jel:J28
unemployment, Logit-Modell, J28, correlated heterogeneity, plant closures, 3301 Social Sciences (miscellaneous), ordered response, panel data, correlated heterogeneity, incidental parameters, Schätztheorie, 2002 Economics and Econometrics, Arbeitslosigkeit, Monte-Carlo-Methode, Modell, Applications of statistics, panel data, ECON Department of Economics, Ordered response, 10007 Department of Economics, Schweiz, Heterogenität, 1804 Statistics, Probability and Uncertainty, 2613 Statistics and Probability, Deutschland, incidental parameters, Panelanalyse, fixed effects, ddc:330, logistic regression, Stochastik, Konsistenz, Zufriedenheit, 330 Economics, subjective wellbeing, ordered response data, Logit, ordered response, Panel, C25, J64, Theorie, C23, Schätzung, jel: jel:C23, jel: jel:J64, jel: jel:C25, jel: jel:J28
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