pendent variable is ordinal, may lead to overestimation of the significance level and incorrect conclusions. In this article, I would like to introduce the usefulness of loglinear models in the field of economic education. I will first describe loglinear models in nonrigorous, nonmathematical terms and will then apply the loglinear technique to a data set related to the field of economic education--student evaluations--to select the model that best fits the data. LOGLINEAR PROBABILITY MODELS Loglinear analysis of categorical data is by no means a new technique; however, it has not been widely used until recently, especially in the field of economics, because of the unavailability of software. In addition, the number of hierarchical models that can be fitted grows as the number of independent variables increases. Thus, the identification of a well-fitting unsaturated model is not an easy task (an unsaturated model contains fewer than all possible interactions of the independent variables). Any researcher who uses loglinear probability models should consider selection strategies to limit the number of models to be evaluated. Although a best selection strategy does not exist, a priori knowledge about the correlations among the variables would help the researcher. The most recent studies in economic education have been conscious of the deficiencies of OLS regression and have employed logit or its variations (i.e., probit and multinominal logit). In comparison with loglinear models, logit models are simpler to formulate, but they do not incorporate the most general interaction terms among independent variables. In a sense, logit models disregard the complex structural relationships that might exist among the independent variables. Although it is possible to derive a logit model from the corresponding loglinear model, the reverse is not true (see Agresti 1984 , chap. 6, for more detail). Loglinear models also differ from logit models in another aspect: in loglinear models, there is no need to distinguish between response variables and independent variables. The concepts of loglinear models may be introduced step by step. The simplest model is a two-dimensional contingency table of y by x 1.1 In a log linear model of y by x 1, the number of cases in each cell of the contingency table can be expressed as functions of y, x 1, and the interaction of the two, y ∘ x 1. To obtain a loglinear model, the natural logs of the estimated cell frequencies--rather than the actual counts--are used. In general, using analysis of variance notation, one can express the model for the log of the frequencies in the ith row and jth column as is done here:2 The procedure HILOGLINEAR of the computer package SPSSXnot ...
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