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Sorry for not being very clear in presenting the problem. Here it is: What I have are observed transitions from state i to state j on quarterly basis and I have calculated empirical transfer probabilities from this. Ofcourse they differ in specific conditions. All together I end up with: a. empirica...

Dear all, I am just starting to use Ordered probit model for ratings (rating transition matrix) depending on several variables (for exaple "country" and "industry" that can count from 1,...,n). So, I need help from the very beggining, i.e. firstly, how do I prepare the input file...