2023
DOI: 10.1017/pan.2022.36
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Detecting and Correcting for Separation in Strategic Choice Models

Abstract: Separation or “perfect prediction” is a common problem in discrete choice models that, in practice, leads to inflated point estimates and standard errors. Standard statistical packages do not provide clear advice on how to correct these problems. Furthermore, separation can go completely undiagnosed in fitting advanced models that optimize a user-supplied log-likelihood rather than relying on pre-programmed estimation procedures. In this paper, we both describe the problems that separation can cause and addres… Show more

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Cited by 2 publications
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“…Both methods ensure finite estimates in theory and usually produce reasonably sized estimates in practice. Methodologists continue to recommend these penalized or Bayesian estimators as a solution to separation (e.g., Anderson, Bagozzi, and Koren 2021;Cook, Hays, and Franzese 2020;Cook, Niehaus, and Zuhlke 2018;Crisman-Cox, Gasparyan, and Signorino 2023).…”
Section: Introductionmentioning
confidence: 99%
“…Both methods ensure finite estimates in theory and usually produce reasonably sized estimates in practice. Methodologists continue to recommend these penalized or Bayesian estimators as a solution to separation (e.g., Anderson, Bagozzi, and Koren 2021;Cook, Hays, and Franzese 2020;Cook, Niehaus, and Zuhlke 2018;Crisman-Cox, Gasparyan, and Signorino 2023).…”
Section: Introductionmentioning
confidence: 99%