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st: Re: ordered probit with a panel


From   "Ada Ma" <Pelikan_4001@hotmail.com>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: Re: ordered probit with a panel
Date   Thu, 4 Dec 2003 00:58:00 -0000

----- Original Message ----- 
From: <Justina.Fischer@unisg.ch>
To: <statalist@hsphsun2.harvard.edu>
Sent: Tuesday, December 02, 2003 8:47 PM
Subject: st: ordered probit with a panel


> Dear List,
>
> I am new to this list so I do not know if the following problem had
> already been discussed:
> At my disposition is a small panel (2 waves) of 5000 individuals who
> were asked about their satisfaction levels, ranging from 1 to 11.
> Because of the dependent variable I thought of an ordered probit
> model. Unfortunately Stata does not provide a panel version of
> oprobit and the online help was not helpful either.
> My spontaneous thought was of pooling the data and clustering for the
> individuals.
> Does one of the experts in this list know of a better alternative ?
> I would very much appreciate constructive hints.
>
> Cheers,
> Justina
>

Since you have only 2 waves, why don't you take the differences between the
2 waves, do an OLS and forget about ordered probit?  You want to control for
the person's own way of converting materialistic and non-materalistic
satisfaction into life satisfaction, right?  I guess the difference would
take care of that.  You can even interact them with dummy variables if some
people have picked up a religion in between the 2 waves.  Using probit sort
of assumes that there is a one to one, sort of a benchmark like relationship
between life incidences and satisfaction.  But life as I experience it is a
bit more relative than that.  Just my thoughts and I hope they help.

Ada Ma
Department of Economics
University of Aberdeen, Scotland
Pelikan_4001@hotmail.com
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