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Advisor(s)
Abstract(s)
An overview is presented of some parametric and semi-parametric models, estimators, and specification tests that can be used to analyze ordered response variables. In particular, limited dependent variable models that general- ize ordered probit are compared to regression models that generalize the linear model. These techniques are then applied to analyze how self-reported satisfac- tion with household income relates to household income, family composition, and other background variables. Data are drawn from the 1998 wave of the German Socio-Economic Panel. The results are used to estimate equivalence scales and the cost of children. We find that the standard ordered probit model is rejected, while some semi-parametric specifications survive specification tests against nonpara- metric alternatives. The estimated equivalence scales, however, are often similar for the parametric and semi-parametric specifications.
Description
Keywords
Semi-parametric estimation Ordered response Equivalence scales
Pedagogical Context
Citation
Bellemare, Charles, Bertrand Melenberg e Arthur van Soest (2002). "Semi-parametric models for satisfaction with income". Portuguese Economic Journal, 1(2):181-203
Publisher
Springer Verlag