Health Service Modeling and Multiple-Equations Models

Abstract

In these types of models,¹ the dependent variable is categorical,² taking values according to a Likert-type scale. As in the cases discussed in Chapter 5, if the error term is assumed to follow the logistic distribution, then an ordered logit model can be adopted. However, if the normal distribution is assumed, then an ordered probit model could be adopted. To see the details regarding the probability estimation from ordered models, we’ll consider the data presented in Table 7.1. The participants are asked to provide answers as to whether they are satisfied with the health services provided by the local health agent.