IDEAS home Printed from https://ideas.repec.org/a/sae/somere/v15y1987i3p336-348.html
   My bibliography  Save this article

Misspecification, Asymptotic Stability, and Ordinal Variables in the Analysis of Panel Data

Author

Listed:
  • GERHARD ARMINGER

    (University of Wuppertal)

Abstract

When using panel data important problems are often conveniently overlooked. These include model misspecification, asymptotic stability, unequally spaced panel waves, and the use of ordinal rather than metric data. While panel data may be useful to eliminate specification error, if the process generating data is in equilibrium, the problems of misspecification persist if a model with a lagged endogenous variable is formulated. Furthermore, the notion of asymptotic stability and its relation to the notion of inertia, which is often called stability by social scientists, is discussed. An important practical question is how to deal with data from panels with unequally spaced intervals between waves. Finally, the issue of the treatment of ordinal dependent variables is addressed. Using ordinal probit thresholds, the question of the variance of an ordinal variable across time is clarified and a quick estimator for this variance is given.

Suggested Citation

  • Gerhard Arminger, 1987. "Misspecification, Asymptotic Stability, and Ordinal Variables in the Analysis of Panel Data," Sociological Methods & Research, , vol. 15(3), pages 336-348, February.
    • Handle: RePEc:sae:somere:v:15:y:1987:i:3:p:336-348
    DOI: 10.1177/0049124187015003007
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0049124187015003007
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0049124187015003007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
    2. Ulf Olsson, 1979. "Maximum likelihood estimation of the polychoric correlation coefficient," Psychometrika, Springer;The Psychometric Society, vol. 44(4), pages 443-460, December.
    3. Bengt Muthén, 1984. "A general structural equation model with dichotomous, ordered categorical, and continuous latent variable indicators," Psychometrika, Springer;The Psychometric Society, vol. 49(1), pages 115-132, March.
    4. P. Bentler & Edward Freeman, 1983. "Tests for stability in linear structural equation systems," Psychometrika, Springer;The Psychometric Society, vol. 48(1), pages 143-145, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Orazio Attanasio & Áureo de Paula & Alessandro Toppeta, 2020. "Intergenerational Mobility in Socio-emotional Skills," NBER Working Papers 27823, National Bureau of Economic Research, Inc.
    2. Kees van Montfort & Ab Mooijaart & Frits Meijerink, 2009. "Estimating structural equation models with non‐normal variables by using transformations," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 63(2), pages 213-226, May.
    3. Bellmann, Lutz & Caliendo, Marco & Hujer, Reinhard & Radic, Dubravko, 2002. "Beschäftigungswirkungen technisch-organisatorischen Wandels : eine mikroökonometrische Analyse mit dem Linked IAB-Panel (Technological and organisational change and its effects on employment : a micro," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(4), pages 506-522.
    4. Pui-Wa Lei, 2009. "Evaluating estimation methods for ordinal data in structural equation modeling," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(3), pages 495-507, May.
    5. P. M. Bentler & Chih-Ping Chou, 1987. "Practical Issues in Structural Modeling," Sociological Methods & Research, , vol. 16(1), pages 78-117, August.
    6. Shaobo Jin & Fan Yang-Wallentin, 2017. "Asymptotic Robustness Study of the Polychoric Correlation Estimation," Psychometrika, Springer;The Psychometric Society, vol. 82(1), pages 67-85, March.
    7. Lankford, Hamilton & Wyckoff, James, 2001. "Who Would Be Left Behind by Enhanced Private School Choice?," Journal of Urban Economics, Elsevier, vol. 50(2), pages 288-312, September.
    8. Jaya Krishnakumar & A. Nagar, 2008. "On Exact Statistical Properties of Multidimensional Indices Based on Principal Components, Factor Analysis, MIMIC and Structural Equation Models," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(3), pages 481-496, May.
    9. Daphna Harel & Russell J. Steele, 2018. "An Information Matrix Test for the Collapsing of Categories Under the Partial Credit Model," Journal of Educational and Behavioral Statistics, , vol. 43(6), pages 721-750, December.
    10. Bellmann, Lutz & Caliendo, Marco & Hujer, Reinhard & Radic, Dubravko, 2002. "Beschäftigungswirkungen technisch-organisatorischen Wandels : eine mikroökonometrische Analyse mit dem Linked IAB-Panel (Technological and organisational change and its effects on employment : a micro," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(4), pages 506-522.
    11. P.A.V.B. Swamy & I-Lok Chang & Jatinder S. Mehta & William H. Greene & Stephen G. Hall & George S. Tavlas, 2016. "Removing Specification Errors from the Usual Formulation of Binary Choice Models," Econometrics, MDPI, vol. 4(2), pages 1-21, June.
    12. Carlo Altavilla & Raffaella Giacomini & Giuseppe Ragusa, 2017. "Anchoring the yield curve using survey expectations," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(6), pages 1055-1068, September.
    13. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2018. "Standard-error correction in two-stage optimization models: A quasi–maximum likelihood estimation approach," Stata Journal, StataCorp LP, vol. 18(1), pages 206-222, March.
    14. Sandy Fréret & Denis Maguain, 2017. "The effects of agglomeration on tax competition: evidence from a two-regime spatial panel model on French data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1100-1140, December.
    15. Ai, Chunrong & Chen, Xiaohong, 2007. "Estimation of possibly misspecified semiparametric conditional moment restriction models with different conditioning variables," Journal of Econometrics, Elsevier, vol. 141(1), pages 5-43, November.
    16. Gregory, Allan W. & McCurdy, Thomas H., 1986. "The unbiasedness hypothesis in the forward foreign exchange market: A specification analysis with application to France, Italy, Japan, the United Kingdom and West Germany," European Economic Review, Elsevier, vol. 30(2), pages 365-381, April.
    17. Pepermans, Roland & Verleye, Gino & Van Cappellen, Sarah, 1996. "'Wallbanking', innovativeness and computer attitudes: 25-40-year-old ATM-users on the spot," Journal of Economic Psychology, Elsevier, vol. 17(6), pages 731-748, December.
    18. B. Praag & T. Dijkstra & J. Velzen, 1985. "Least-squares theory based on general distributional assumptions with an application to the incomplete observations problem," Psychometrika, Springer;The Psychometric Society, vol. 50(1), pages 25-36, March.
    19. Reischmann, Markus, 2016. "Creative accounting and electoral motives: Evidence from OECD countries," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 243-257.
    20. Czudaj Robert L., 2020. "The role of uncertainty on agricultural futures markets momentum trading and volatility," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 24(3), pages 1-39, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:somere:v:15:y:1987:i:3:p:336-348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.