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Specification and Estimation of Rating Scale Models: With an Application to the Determinants of Life Satisfaction

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  • Raphael Studer
  • Rainer Winkelmann

Abstract

Rating variables indicate the extent to which a quality is present, or absent, in a unit of observation. In this paper, we discuss a class of non-linear regression models for rating dependent variables and their estimation by parametric and semiparametric methods. An application to life satisfaction illustrates the main differences between the Rating Scale Model and ordinary least squares.

Suggested Citation

  • Raphael Studer & Rainer Winkelmann, 2011. "Specification and Estimation of Rating Scale Models: With an Application to the Determinants of Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 372, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp372
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    More about this item

    Keywords

    rating variables; non-linear least squares; quasi-maximum likelihood; semiparametric least squares; subjective well-being;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I0 - Health, Education, and Welfare - - General

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