Hidden Markov Models for Longitudinal Rating Data with Dynamic Response Styles

RWTH Publications (RWTH Aachen)

Abstract

This work deals with the analysis of longitudinal ordinal responses. The novelty of the proposed approach is in modeling simultaneously the temporal dynamics of a latent trait of interest, measured via the observed ordinal responses, and the answering behaviors influenced by response styles, through hidden Markov models (HMMs) with two latent components. This approach enables the modeling of (i) the substantive latent trait, controlling for response styles; (ii) the change over time of latent trait and answering behavior, allowing also dependence on individual characteristics. For the proposed HMMs, estimation procedures, methods for standard errors calculation, measures of goodness of fit and classification, and full-conditional residuals are discussed. The proposed model is fitted to ordinal longitudinal data from the Survey on Household Income and Wealth (Bank of Italy) to give insights on the evolution of the Italian households financial capability.

Authors 3

1. Roberto Colombi

   University of Bergamo

   Affiliation as printed

   [University of Bergamo]

2. Sabrina Giordano

   University of Calabar

   Affiliation as printed

   University of Calabar

3. Maria Kateri Aachen

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University