* Ordered Probit and Logit Models in Stata

* Copyright 2013 by Ani Katchova

clear all
set more off

use C:\Econometrics\Data\ordered_health.dta

* Dependent variable has 3 categories denoted 1,2,3

global ylist healthstatus
global xlist age logincome numberdiseases

describe $ylist $xlist

summarize $ylist $xlist

tabulate $ylist

* Ordered logit model

ologit $ylist $xlist

* Ordered logit marginal effects

margins, dydx(*) atmeans predict(outcome(1))
margins, dydx(*) atmeans predict(outcome(2))
margins, dydx(*) atmeans predict(outcome(3))

* Ordered logit predicted probabilities

predict p1ologit p2ologit p3ologit, pr
summarize p1ologit p2ologit p3ologit
tabulate $ylist

* Ordered probit model coefficients

oprobit $ylist $xlist

* Ordered probit model marginal effects

margins, dydx(*) atmeans predict(outcome(1))
margins, dydx(*) atmeans predict(outcome(2))
margins, dydx(*) atmeans predict(outcome(3))

* Ordered probit model predicted probabilities

predict p1oprobit, pr outcome(1)
predict p2oprobit, pr outcome(2)
predict p3oprobit, pr outcome(3)
summarize p1oprobit p2oprobit p2oprobit
tabulate $ylist
. * Ordered Probit and Logit Models in Stata
. * Copyright 2013 by Ani Katchova
.
. clear all

. set more off

.
. use C:\Econometrics\Data\ordered_health.dta

.
. * Dependent variable has 3 categories denoted 1,2,3
. global ylist healthstatus

. global xlist age logincome numberdiseases

.
. describe $ylist $xlist

storage display value

variable name type format label variable label
--------------------------------------------------------------------------------------
-------------------
healthstatus float %9.0g hsvalue health status (fair, good, excellent)
age float %9.0g age
logincome float %9.0g log of annual family income (in $)
numberdiseases float %9.0g number of chronic diseases

. summarize $ylist $xlist

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------
healthstatus | 5574 2.447435 .659524 1 3
age | 5574 25.57613 16.73011 .0253251 63.27515
logincome | 5574 8.696929 1.220592 0 10.28324
numberdise~s | 5574 11.20526 6.788959 0 58.6

.
. tabulate $ylist

health |
status |
(fair, |
good, |
excellent) | Freq. Percent Cum.
------------+-----------------------------------
fair | 523 9.38 9.38
good | 2,034 36.49 45.87
excellent | 3,017 54.13 100.00
------------+-----------------------------------
Total | 5,574 100.00

.
. * Ordered logit model
. ologit $ylist $xlist
Iteration 0: log likelihood = -5140.0463
Iteration 1: log likelihood = -4776.008
Iteration 2: log likelihood = -4769.8693
Iteration 3: log likelihood = -4769.8525
Iteration 4: log likelihood = -4769.8525

Ordered logistic regression Number of obs = 5574

LR chi2(3) = 740.39
Prob > chi2 = 0.0000
Log likelihood = -4769.8525 Pseudo R2 = 0.0720

--------------------------------------------------------------------------------
healthstatus | Coef. Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | -.0292944 .001681 -17.43 0.000 -.0325891 -.0259996
logincome | .2836537 .0231098 12.27 0.000 .2383593 .3289481
numberdiseases | -.0549905 .0040692 -13.51 0.000 -.0629661 -.047015
---------------+----------------------------------------------------------------
/cut1 | -1.39598 .2061301 -1.799987 -.9919722
/cut2 | .9513097 .2054301 .5486741 1.353945
--------------------------------------------------------------------------------

.
. * Ordered logit marginal effects
. margins, dydx(*) atmeans predict(outcome(1))

Conditional marginal effects Number of obs = 5574

Model VCE : OIM

Expression : Pr(healthstatus==1), predict(outcome(1))

dy/dx w.r.t. : age logincome numberdiseases
at : age = 25.57613 (mean)
logincome = 8.696929 (mean)
numberdise~s = 11.20526 (mean)

--------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | .002058 .0001333 15.44 0.000 .0017969 .0023192
logincome | -.0199278 .0017344 -11.49 0.000 -.0233272 -.0165284
numberdiseases | .0038633 .0003056 12.64 0.000 .0032643 .0044623
--------------------------------------------------------------------------------

. margins, dydx(*) atmeans predict(outcome(2))

Conditional marginal effects Number of obs = 5574

Model VCE : OIM

Expression : Pr(healthstatus==2), predict(outcome(2))

dy/dx w.r.t. : age logincome numberdiseases
at : age = 25.57613 (mean)
logincome = 8.696929 (mean)
numberdise~s = 11.20526 (mean)
--------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | .0052244 .0003258 16.04 0.000 .0045859 .0058629
logincome | -.0505872 .0043054 -11.75 0.000 -.0590256 -.0421489
numberdiseases | .0098071 .000768 12.77 0.000 .0083018 .0113124
--------------------------------------------------------------------------------

. margins, dydx(*) atmeans predict(outcome(3))

Conditional marginal effects Number of obs = 5574

Model VCE : OIM

Expression : Pr(healthstatus==3), predict(outcome(3))

dy/dx w.r.t. : age logincome numberdiseases
at : age = 25.57613 (mean)
logincome = 8.696929 (mean)
numberdise~s = 11.20526 (mean)

--------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | -.0072824 .0004179 -17.43 0.000 -.0081014 -.0064634
logincome | .070515 .0057527 12.26 0.000 .05924 .0817901
numberdiseases | -.0136704 .0010126 -13.50 0.000 -.015655 -.0116858
--------------------------------------------------------------------------------

.
. * Ordered logit predicted probabilities
. predict p1ologit p2ologit p3ologit, pr

. summarize p1ologit p2ologit p3ologit

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------
p1ologit | 5574 .0946903 .0843148 .0233629 .859022
p2ologit | 5574 .3651672 .0946158 .1255265 .5276064
p3ologit | 5574 .5401425 .1640575 .0154515 .7999009

. tabulate $ylist

health |
status |
(fair, |
good, |
excellent) | Freq. Percent Cum.
------------+-----------------------------------
fair | 523 9.38 9.38
good | 2,034 36.49 45.87
excellent | 3,017 54.13 100.00
------------+-----------------------------------
Total | 5,574 100.00
.
.
. * Ordered probit model coefficients
. oprobit $ylist $xlist

Iteration 0: log likelihood = -5140.0463

Iteration 1: log likelihood = -4771.7555
Iteration 2: log likelihood = -4771.0299
Iteration 3: log likelihood = -4771.0298

Ordered probit regression Number of obs = 5574

LR chi2(3) = 738.03
Prob > chi2 = 0.0000
Log likelihood = -4771.0298 Pseudo R2 = 0.0718

--------------------------------------------------------------------------------
healthstatus | Coef. Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | -.0171681 .0009898 -17.34 0.000 -.0191082 -.0152281
logincome | .1654079 .01286 12.86 0.000 .1402028 .190613
numberdiseases | -.0315288 .0023848 -13.22 0.000 -.0362029 -.0268548
---------------+----------------------------------------------------------------
/cut1 | -.7945455 .115108 -1.020153 -.5689379
/cut2 | .5459371 .1148228 .3208886 .7709857
--------------------------------------------------------------------------------

.
. * Ordered probit model marginal effects
. margins, dydx(*) atmeans predict(outcome(1))

Conditional marginal effects Number of obs = 5574

Model VCE : OIM

Expression : Pr(healthstatus==1), predict(outcome(1))

dy/dx w.r.t. : age logincome numberdiseases
at : age = 25.57613 (mean)
logincome = 8.696929 (mean)
numberdise~s = 11.20526 (mean)

--------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | .0024261 .0001545 15.70 0.000 .0021233 .002729
logincome | -.0233749 .0019304 -12.11 0.000 -.0271584 -.0195914
numberdiseases | .0044556 .0003587 12.42 0.000 .0037525 .0051586
--------------------------------------------------------------------------------

. margins, dydx(*) atmeans predict(outcome(2))

Conditional marginal effects Number of obs = 5574

Model VCE : OIM

Expression : Pr(healthstatus==2), predict(outcome(2))

dy/dx w.r.t. : age logincome numberdiseases
at : age = 25.57613 (mean)
logincome = 8.696929 (mean)
numberdise~s = 11.20526 (mean)

--------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | .0043886 .0002786 15.75 0.000 .0038426 .0049347
logincome | -.0422827 .0034702 -12.18 0.000 -.0490842 -.0354812
numberdiseases | .0080596 .0006459 12.48 0.000 .0067937 .0093256
--------------------------------------------------------------------------------

. margins, dydx(*) atmeans predict(outcome(3))

Conditional marginal effects Number of obs = 5574

Model VCE : OIM

Expression : Pr(healthstatus==3), predict(outcome(3))

dy/dx w.r.t. : age logincome numberdiseases
at : age = 25.57613 (mean)
logincome = 8.696929 (mean)
numberdise~s = 11.20526 (mean)

--------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
age | -.0068148 .0003929 -17.34 0.000 -.0075849 -.0060447
logincome | .0656577 .0051072 12.86 0.000 .0556476 .0756677
numberdiseases | -.0125152 .0009472 -13.21 0.000 -.0143717 -.0106587
--------------------------------------------------------------------------------

.
. * Ordered probit model predicted probabilities
. predict p1oprobit, pr outcome(1)

. predict p2oprobit, pr outcome(2)

. predict p3oprobit, pr outcome(3)

. summarize p1oprobit p2oprobit p2oprobit

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------
p1oprobit | 5574 .0941691 .0897707 .0155477 .8556623
p2oprobit | 5574 .3641854 .0802058 .1361741 .497296
p2oprobit | 5574 .3641854 .0802058 .1361741 .497296

. tabulate $ylist

health |
status |
(fair, |
 good, |
excellent) | Freq. Percent Cum.
------------+-----------------------------------
fair | 523 9.38 9.38
good | 2,034 36.49 45.87
excellent | 3,017 54.13 100.00
------------+-----------------------------------
Total | 5,574 100.00