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# Re: st: continuous data measured as ordinal catogories

 From Shehzad Ali To statalist@hsphsun2.harvard.edu Subject Re: st: continuous data measured as ordinal catogories Date Fri, 9 Apr 2010 14:09:22 +0000 (GMT)

```Thank you, Richard, Maaten and Clive. These are all very helpful suggestions.

I want to use willingness-to-pay as the dependent variable. The category 'other' includes random amounts that are may be less or greater than the highest amount category (i.e. \$10). These 'other' amounts account for around 10% of the data. I assume that using the response categories of \$1, \$5, \$10 and 'other amounts' as a continuous variable would be inappropriate, or would it?

Many thanks,

----- Original Message ----
> From: Maarten buis <maartenbuis@yahoo.co.uk>
> To: statalist@hsphsun2.harvard.edu
> Sent: Fri, 9 April, 2010 8:25:45
> Subject: Re: st: continuous data measured as ordinal catogories
>
> --------------------------
Maarten L. Buis
Institut fuer
> Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074
> Tuebingen
Germany

> >http://www.maartenbuis.nl
--------------------------

--- On
> Fri, 9/4/10, Richard Williams wrote:
> If you want it as an independent
> variable, my first impulse
> is to break it into dummies.

A
> somewhat uncommon but sometimes useful interpretation of such
a model is that
> it simultaneously fits an optimal scale for
your ordinal variable and an
> effect of that optimally scaled
variable. The scale is optimal in the sense
> that it best
predicts the dependent variable. The sheaf-coefficients, as
>
implemented in -sheafcoef-, uses that approach. This allows
you to
> _both_ present a single effect of willingness to pay and
use the more
> flexible approach proposed Richard. You can
> -ssc install sheafcoef-, and it
is discussed in this paper: <> href="http://www.maartenbuis.nl/wp/prop.html"; target=_blank
> >http://www.maartenbuis.nl/wp/prop.html>

Hope this
> helps,
Maarten

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