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On the number of categories in an ordered regression model
Authors:Philip Hans Franses  JS Cramer
Institution:Econometric Institute, Erasmus School of Economics, PO Box 1738, NL-3000 DR Rotterdam, The Netherlands;
Tinbergen Institute, University of Amsterdam, Roetersstraat, 101 SWB Amsterdam, The Netherlands
Abstract:We show that there is no formal statistical testing method to support combining categories in a standard ordered regression model. We discuss practical implications of this result.
Keywords:ordered regression model  number of categories
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