Semi-parametric models for satisfaction with income

Arbeitspapier

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 household income relates to household income, family composition, and other background variables. Data are drawn from the 1998 wave of the German Socio- Economic Panel. The results are used to estimate equivalence scales and the cost of children. We find that the standard ordered probit model is rejected, while some semi-parametric specifications survive specification tests against nonparametric alternatives. The estimated equivalence scales, however, are often similar for the parametric and semi-parametric specifications.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cemmap working paper ; No. CWP12/02

Classification and Topics

• Classification: Wirtschaft ; Semiparametric and Nonparametric Methods: General ; Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions ; Consumer Economics: Empirical Analysis
• Subject: Semi–parametric estimation , Ordered Response , Equivalence scales ; Nichtparametrisches Verfahren ; Schätzung ; Disparitätsmaß ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bellemare, Charles ; Melenberg, Bertrand ; van Soest, Arthur
• Event: Veröffentlichung
• (who): Centre for Microdata Methods and Practice (cemmap)
• (where): London
• (when): 2002

Further information

• DOI: doi:10.1920/wp.cem.2002.1202
• Handle: http://hdl.handle.net/10419/79319
• Last update: 10.03.2025, 11:45 AM CET