Estimating treatment effects for ordered outcomes using maximum simulated likelihood

Christian A. Gregory ()
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Christian A. Gregory: Economic Research Service, USDA

Stata Journal, 2015, vol. 15, issue 3, 756-774

Abstract: I present four new commands to estimate the effect of a binary endogenous treatment on an ordered outcome. Such models conventionally rely upon joint normality of the unobservables in treatment and outcome processes, as do treatoprobit and switchoprobit. In this article, I highlight the capabilities of treatoprobitsim and switchoprobitsim, which both use a latent-factor structure to model the joint distribution of the treatment and outcome and allow the researcher to relax the assumption of joint normality. Copyright 2015 by StataCorp LP.

Keywords: treatoprobit; switchoprobit; treatoprobitsim; switchoprobitsim; ordinal outcomes; endogenous binary treatment; treatment effects (search for similar items in EconPapers)
Date: 2015
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