Identification and Estimation of Thresholds in the Fixed Effects Ordered Logit Model

University of Zurich Department of Economics Working Paper No. 46

9 Pages Posted: 24 Nov 2011

Date Written: November 11, 2011

Abstract

The paper proposes a new estimator for the fixed eff ects ordered logit model. In contrast to existing methods, the new procedure allows estimating the thresholds. The empirical relevance and simplicity of implementation is illustrated in an application to the eff ect of unemployment on life satisfaction.

Keywords: Ordered response, panel data, correlated heterogeneity, incidental parameters

JEL Classification: C23, C25, J28, J64

Suggested Citation

Baetschmann, Gregori, Identification and Estimation of Thresholds in the Fixed Effects Ordered Logit Model (November 11, 2011). University of Zurich Department of Economics Working Paper No. 46, Available at SSRN: https://ssrn.com/abstract=1963760 or http://dx.doi.org/10.2139/ssrn.1963760

Gregori Baetschmann (Contact Author)

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

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