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Heteroskedasticity, extremity, and moderation in heterogeneous choice models

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Author Info
Garrett Glasgow () (University of California, Santa Barbara)

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Abstract

Heterogeneous choice models are extensions of binary and ordinal regression models that explicitly model the determinants of heteroskedasticity. I show that in many cases moderation (proximity to a choice threshold) will produce empirical results identical to heteroskedasticity in binary heterogeneous choice models, while extremity (a preference for endpoint categories) will produce empirical results identical to heteroskedasticity in ordinal heterogeneous choice models. I show how a simple extension of Williams' user-written oglm command (2006) can create heterogenous ordered choice models that can distinguish between heteroskedasticity, extremity, and moderation.

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Paper provided by Stata Users Group in its series Fall North American Stata Users' Group Meetings 2008 with number 16.

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Date of creation: 16 Nov 2008
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Handle: RePEc:boc:fsug08:16

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