From the course: Introduction to Stata 15
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Ordered logit and ordered probit - Stata Tutorial
From the course: Introduction to Stata 15
Ordered logit and ordered probit
- [Instructor] In this Chapter we'll explore models that have categorical dependent variables with more than two categories. And these categories might be ordered or unordered in this session we'll explore what to do with ordered categorical dependent variables. Ordered variables are coded as consecutive integers and often take the form one, two, three, four, et cetera. Examples are bond ratings or likert scales or even continuous variables that have been banded into categories. They can be increasing or decreasing but must go in one direction only, up or down. To estimate such models we usually use modified versions of the loaded and probit models called ordered loaded and ordered probit models. Before we proceed it's worth spending just a minute explaining a few differences. Both ordered logit and ordered probit models use the same kind of mechanics as their binary counterparts. So little changes with regards to interpreting their coefficients. However because there are now multiple…
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