Hidden Harmony

40 Pages Posted: 27 Nov 2020 Last revised: 20 May 2021

See all articles by Yingyao Hu

Yingyao Hu

Johns Hopkins University - Department of Economics

Zhongjian Lin

Emory University - Department of Economics

Ning Neil Yu

Nanjing Audit University - Institute for Social and Economic Research

Date Written: May 11, 2021

Abstract

It is difficult to reach a consensus on how to measure a social construct such as the harmony level of a group of people. To circumvent the difficulty, we develop “latent” binary quantile regression for settings in which the binary regressand is unobserved and proxied by multiple indicators (e.g., separate reports of whether a group is harmonious). We demonstrate how to identify and estimate parameters for conditional quantiles of the hidden outcome (e.g., group harmony level), prove the strong consistency of the estimator, and run Monte Carlo experiments to verify its finite-sample performance. Based on such a general-purpose method, we use high-quality survey data to uncover factors a effecting the harmony levels within college dormitory rooms. Among other findings, we discover that sleeping schedule discordance damages relationship. Both our approach and findings are applicable for management research and practice.

Keywords: Latent Binary Quantile Regression, Latent Maximum Score Estimator, Measurement Error, Misclassification, Small Group Harmony, College Dormitory

JEL Classification: C21,C25,I20

Suggested Citation

Hu, Yingyao and Lin, Zhongjian and Yu, Ning Neil, Hidden Harmony (May 11, 2021). Available at SSRN: https://ssrn.com/abstract=3692898 or http://dx.doi.org/10.2139/ssrn.3692898

Yingyao Hu

Johns Hopkins University - Department of Economics ( email )

3400 Charles Street
Baltimore, MD 21218-2685
United States

Zhongjian Lin (Contact Author)

Emory University - Department of Economics ( email )

1602 Fishburne Drive
Atlanta, GA 30322
United States

Ning Neil Yu

Nanjing Audit University - Institute for Social and Economic Research ( email )

Stanford, CA 94305
United States

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