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  • Which is the most appropriate econometric model to apply

    Dear All,

    I am working with panel data - 300 companies for 7 years. My dependent variable is an ordinal variable ranging from 0-8 where 0 signifies no/inadequate data. These are CDP scores and 0-8 stands for quality of disclosure. The data collected has a considerable number of zero values in the dependent variable.
    There are 4 independent variables which are ratio scores and 7 control variables out of which two (presence or absence of committee and CEO duality) are dummy dichotomous 0/1 coded variables.

    I am a beginner to econometrics and need to understand which modeling technique would fit best and why?

    Thanks in advance

  • #2
    this might do.

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    https://journals.sagepub.com/doi/abs/10.1177/1536867X20930984
    not sure if zero-inflation is relevant here.

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    https://www.stata.com/features/overview/zero-inflated-ordered-probit/

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    • #3
      Thankyou Professor.

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