Modeling Ordered Choices: A Primer and Recent Developments

181 Pages Posted: 10 Aug 2008

See all articles by William H. Greene

William H. Greene

New York University Stern School of Business

David A. Hensher

University of Sydney Business School

Date Written: June 15, 2008

Abstract

We survey the literature on models for ordered choices, including ordered logit and probit specifications. The contemporary form of the model is presented and analyzed in detail. The historical development of the model is presented as well. We detail a number of generalizations that have appeared in the recent literature. Finally, we propose a new form of the model that accommodates in a natural, internally consistent form, functional form flexibility and individual heterogeneity. Much of this study is pedagogical. However, the last few sections propose new model formulations, and illustrate them with an application to self reported health satisfaction.

Suggested Citation

Greene, William H. and Hensher, David A., Modeling Ordered Choices: A Primer and Recent Developments (June 15, 2008). Available at SSRN: https://ssrn.com/abstract=1213093 or http://dx.doi.org/10.2139/ssrn.1213093

William H. Greene (Contact Author)

New York University Stern School of Business ( email )

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212-998-0876 (Phone)

HOME PAGE: http://people.stern.nyu.edu/wgreene

David A. Hensher

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia
+ 61 2 9351 0071 (Phone)
+ 61 2 9351 0088 (Fax)

HOME PAGE: http://www.its.usyd.edu.au/about_itls/staff/davidh.asp

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