Bookmark and Share

Notice: On March 31, it was announced that Statalist is moving from an email list to a forum. The old list will shut down at the end of May, and its replacement, statalist.org is already up and running.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: st: Ordered Probit Interpretation


From   Richard Williams <richardwilliams.ndu@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Ordered Probit Interpretation
Date   Fri, 26 Aug 2011 11:15:33 -0500

At 08:55 AM 8/26/2011, Venkiteshwaran, Vinod wrote:
I am running an ordered probit model with pooled cross-sectional data. The ordered dependent variable, Y_it has 7 categories that sometimes change within each i. THe variable of interest is X_it. In the results X_it enters the model with a highly significant negative coefficient implying that the marginal effect of a change in X_it is that it reduces(increases) the probability of the highest(lowest) category of Y_it.

I then transformed the Y_it variable into changes and ranked the changes, Y*_it. That is if the change is upward, downward or no change, where the order is 3,2 and 1 respectively. I re-run my ordered probit model with Y*_it as my dependent variable and the same X_it. In this model X_it no longer has a significant coefficient. Econometrically how should this insignificance be interpreted?

I am not sure why you are doing that, but in any event why would you consider Y*_it ordinal? If you want it to be ordinal, I would think you would want it to be upward, no change, downward. Or, use mprobit rather than oprobit.


-------------------------------------------
Richard Williams, Notre Dame Dept of Sociology
OFFICE: (574)631-6668, (574)631-6463
HOME:   (574)289-5227
EMAIL:  Richard.A.Williams.5@ND.Edu
WWW:    http://www.nd.edu/~rwilliam

*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   Site index