We discuss regression models for ordered responses, such as ratings of bonds, schooling attainment, or measures of subjective well-being. Commonly used models in this context are the ordered logit and ordered probit regression models. They are based on an underlying latent model with single index function and constant thresholds. We argue that these approaches are overly restrictive and preclud...

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 generalize ordered probit are compared to regression models that generalize the linear model. These techniques are then applied to analyze how self-reported satisfaction with hous...

If menu costs have a non-negligible lump-sum component and with larger firms having greater benefits from price adjustments, then larger firms will change price more frequently than smaller firms. Data from New Zealand firms support this hypothesis. Price duration decreases as firm size increases. Ordered probit analysis indicates the effect comes primarily from larger firms being more likely t...

The choice of exchange rate regime has become one of the most important issues once more in many economies after the financial crises in recent years. In the wake of the financial crises, many countries, especially emerging market economies, opted for floating exchange rate regimes by forsaking the pegged regimes. Consequently, an old debate on the choice and determinants of exchange rate regim...

We estimate the conditional distribution of trade-to-trade price changes using ordered probit, a statistical model for discrete dependent variables that possess a natural ordering. Such an approach takes into account the fact that transaction price changes occur in discrete increments, typically eighths of a dollar, and occur at irregularly spaced time intervals. Unlike existing continuous-time...

In this paper we have combined fundamental analysis and contingent claim analysis into a hybrid model of credit risk measurement. We have extended the standard Merton approach to estimate a new risk neutral distance to default metric, assuming a more complex capital structure, adjusting for dividend payments, introducing randomness to the default point and allowing a fractional recovery when de...

The ordered probit regression model is used to investigate domestic real estate brokers in Taiwan, in order to determine the factors affecting the listings of realtors and provide a reference for the domestic real estate brokerage market. Based on empirical analysis, this study found that the Wald Chi-Square of six independent variables reached a significance level of 5%, while the other two in...

This paper focuses on the role of remittances on financial expectations in Albania using longitudinal data covering the period 2002-2004. To study the dynamics of income satisfaction at the household level, we use subjective data on past, current and future financial situations and estimate random and fixed effect ordered Probit models. We find that households are more optimistic about the futu...

Crawfish processors’ ex ante adoption rates of three hypothetical crawfish peeling machines are assessed using a polychotomous-choice elicitation format. Adoption rates would likely range from 23% to 70%, depending upon which machine was offered and whether it was purchased or leased. Processors most likely to adopt are determined using ordered probit analysis. Likely adopters would be larger, ...

GENDER AND RACIAL DISCRIMINATION IN PAY AND PROMOTION FOR NHS NURSES For many years the NHS has been subject to allegations that gender and racial discrimination are a feature of the internal labour market for qualified nurses. This paper examines this issue with regard to the promotion process using 1994 survey data. We start by rejecting the assumption of covariate exogeneity inherent in the ...