Keep it simple: estimation strategies for ordered response models with fixed effects

By running Monte Carlo simulations, we compare different estimation strategies of ordered response models in the presence of non-random unobserved heterogeneity. We find that very simple binary recoding schemes deliver parameter estimates with very low bias and high efficiency. Furthermore, if the researcher is interested in the relative size of parameters the simple linear fixed effects model is the method of choice.

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Year of publication:	2014
Authors:	Riedl, Maximilian ; Geishecker, Ingo
Published in:	Journal of Applied Statistics. - Taylor & Francis Journals, ISSN 0266-4763. - Vol. 41.2014, 11, p. 2358-2374
Publisher:	Taylor & Francis Journals

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010953598