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- W1987163832 abstract "In many empirical analyses, the response of interest is categorical with an ordinal scale attached. Many investigators prefer to formulate a linear model, assigning scores to each category of the ordinal response and treating it as continuous. When the covariates are categorical, Haber (1985, Computational Statistics and Data Analysis 3, 1-10) has developed a method to obtain maximum likelihood (ML) estimates of the parameters of the linear model using Lagrange multipliers. However, when the covariates are continuous, the only method we found in the literature is ordinary least squares (OLS), performed under the assumption of homogeneous variance. The OLS estimates are unbiased and consistent but, since variance homogeneity is violated, the OLS estimates of variance can be biased and may not be consistent. We discuss a variance estimate (White, 1980, Econometrica 48, 817-838) that is consistent for the true variance of the OLS parameter estimates. The possible bias encountered by using the naive OLS variance estimate is discussed. An estimated generalized least squares (EGLS) estimator is proposed and its efficiency relative to OLS is discussed. Finally, an empirical comparison of OLS, EGLS, and ML estimators is made." @default.
- W1987163832 created "2016-06-24" @default.
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- W1987163832 date "1992-03-01" @default.
- W1987163832 modified "2023-10-02" @default.
- W1987163832 title "Methods for Estimating the Parameters of a Linear Model for Ordered Categorical Data" @default.
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- W1987163832 doi "https://doi.org/10.2307/2532755" @default.
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