Specification and Estimation of Rating Scale Models: With an Application to the Determinants of Life Satisfaction

Abstract

Rating variables indicate the extent to which a quality is present, or absent, in a unit of observation. In this paper, we discuss a class of non-linear regression models for rating dependent variables and their estimation by parametric and semiparametric methods. An application to life satisfaction illustrates the main differences between the Rating Scale Model and ordinary least squares.rating variables, non-linear least squares, quasi-maximum likelihood, semiparametric least squares, subjective well-being