OBESrevisions_FINAL_26.01.2020.pdf (486.08 kB)
Modelling category inflation with multiple inflation processes: Estimation, specification, and testing
journal contribution
posted on 2020-04-07, 10:42 authored by Sarah Brown, Mark Harris, Christopher SpencerChristopher SpencerZero-inflated ordered probit (ZIOP) and middle-inflated ordered probit (MIOP) models are
finding increasing favour in the discrete choice literature. We propose generalisations to these
models which collapse to their ZIOP/MIOP counterparts under a set of simple parameter
restrictions with respect to the inflation process. These generalisations form the basis of a
new specification test of the inflation process in ZIOP and MIOP models. Support for our
generalisation framework is principally demonstrated by revisiting a key ZIOP application
from the economics literature, and reinforced by the reassessment of an important MIOP
application from political science. Our specification test supports the generalised models
over the original ZIOP/MIOP ones, suggesting an important role for it in modelling zero and middle-inflation processes.
Funding
Australian Research Council
History
School
- Business and Economics
Department
- Economics
Published in
Oxford Bulletin of Economics and StatisticsVolume
82Issue
6Pages
1342 - 1361Publisher
WileyVersion
- AM (Accepted Manuscript)
Rights holder
© The Department of Economics, University of Oxford and John Wiley & Sons LtdPublisher statement
This is the peer reviewed version of the following article: Brown, S., Harris, M.N. and Spencer, C. (2020), Modelling Category Inflation with Multiple Inflation Processes: Estimation, Specification and Testing. Oxford Bulletin of Economics and Statistics, 82 (6), pp.1342-1361, which has been published in final form at https://doi.org/10.1111/obes.12366. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.Acceptance date
2020-02-27Publication date
2020-05-05Copyright date
2020ISSN
0305-9049eISSN
1468-0084Publisher version
Language
- en