On Sat, 12 Feb 2011, Birger Baksaas wrote: > Coefficients from the Ordered Logit function are correct in gretl, but > the signs seem to be mixed up. > > According to the user guide, gretl fits an ascending cumulative odds > model. Then it predicts the odds of being at or below a particular > category. In this case the slopes for independent variables simply have > wrong signs.
I note that the gretl coefficients and cut-points (magnitude and sign) agree with those given by Wooldridge in his Econometric Analysis of Cross Section and Panel Data, Example 15.5 on Asset Allocation. A script for this example is in the Gretl User's Guide (in fact ordered probit is used, but the signs are the same for logit). And the theoretical account of the method in the User's Guide is, so far as I can see, fully consistent with that given by Wooldridge. So I'm puzzled. Allin Cottrell
