Modelling of Poor Household in East Kalimantan Using Zero Inflated Ordered Probit (ZIOP) Approach

Abstract

Discrete ordinal response variables often exhibit an “excess” of zeros, which can be attributed to two different data conditions. Conventional ordinal probit models are limited in their ability to explain these excess zeros. The Zero Inflated Ordered Probit (ZIOP) model, which combines binary probit and ordinal probit regression, can be used to address this limitation. This study reviews the empirical analysis of the factors that contribute to poor household levels in East Kalimantan. The goodness-of-fit of the ZIOP and ordinal probit models was assessed using the Vuong test.