Tag: Statistics
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Mediation Analysis and the ‘Sequential Unconfoundedness’ Assumption
Students with the Centre for the Study of African Economies (CSAE) at the University of Oxford are creating a wonderful public good. The Coders’ Corner is a collection of tips and tricks for implementing useful statistical techniques in common statistical software (e.g., mostly Stata). This product represents a tremendous service to the broader research community.…
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Binary Dependent Variable? … Just use OLS
Here is an excerpt from a recent paper published in Applied Economic Perspectives and Policy by John Gibson; entitled, “Are You Estimating the Right Thing? An Editor Reflects.”
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How Much Does the Cardinal Treatment of Ordinal Variables Matter? – New Working Paper
Concepts such as subjective well-being, satisfaction, happiness, trust, measures of quality, and even standardized test scores are all measured using an ordinal variable. This means that we know the rank of the response categories (e.g. a respondent reporting being “very satisfied” indicates they are more satisfied than if they had reported being “satisfied”), but we…