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A Bayesian approach for analysing longitudinal nominal outcomes using random coefficients transitional generalized logit model: an application to the labour force survey data

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A random-effects transition model is proposed to model the economic activity status of household members. This model is introduced to take into account two kinds of correlations; one due to the longitudinal nature of the study, which will be considered using a transition parameter, and the other due to the existing correlation between responses of members of the same household which is taken into account by introducing random coefficients into the model. The results are presented based on the homogeneous (all parameters are not changed by time) and non-homogeneous Markov models with random coefficients. A Bayesian approach via the Gibbs sampling is used to perform parameter estimation. Results of using random-effects transition model are compared, using deviance information criterion, with those of three other models which exclude random effects and/or transition effects. It is shown that the full model gains more precision due to the consideration of all aspects of the process which generated the data. To illustrate the utility of the proposed model, a longitudinal data set which is extracted from the Iranian Labour Force Survey is analysed to explore the simultaneous effect of some covariates on the current economic activity as a nominal response. Also, some sensitivity analyses are performed to assess the robustness of the posterior estimation of the transition parameters to the perturbations of the prior parameters.
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Keywords: Gibbs sampling; clustered longitudinal data; economic activity status; random coefficients; sensitivity analysis; transition model

Document Type: Research Article

Affiliations: 1: Statistical Research and Training Center, Tehran, 1433873487, Iran 2: Department of Statistics, Faculty of Mathematical Sciences, Shahid Beheshti University, Tehran, 1983963113, Iran

Publication date: July 1, 2013

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