Specification test in panel ordered response models

• Published in: Communications in statistics. Simulation and computation Vol. 54; no. 7; pp. 2404 - 2417
• Main Authors: Chen, Yongwei, Li, Kunpeng, Zhang, Jie
• Format: Journal Article
• Language: English
• Published: Taylor & Francis 03.07.2025
• Subjects: Happiness; Ordered variable; Sequential test; Threshold effect

This paper develops a new simple method to simultaneously test the threshold effect and the correlation between unobserved individual effects and covariates in a panel ordered response model. We first use logistic function to represent the threshold effect, and use Mundlak's projection formula...