Consistent Estimation of the Fixed Effects Ordered Logit Model
The paper re-examines existing estimators for the panel data fixed effects ordered logit model, proposes a new one, and studies the sampling properties of these estimators in a series of Monte Carlo simulations. There are two main findings. First, we show that some of the estimators used in the literature are inconsistent, and provide reasons for the inconsistency. Second, the new estimator is never outperformed by the others, seems to be substantially more immune to small sample bias than other consistent estimators, and is easy to implement. The empirical relevance is illustrated in an application to the effect of unemployment on life satisfaction.
|Date of creation:||Jan 2011|
|Date of revision:|
|Publication status:||published in: Journal of the Royal Statistical Society A, 2015, 178, 685–703.|
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References listed on IDEAS
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- repec:zbw:rwirep:0063 is not listed on IDEAS
- Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Investigating the Patterns and Determinants of Life Satisfaction in Germany Following Reunification," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
- repec:dgr:kubcen:200769 is not listed on IDEAS
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