In the previous post (https://statcompute.wordpress.com/2018/01/28/modeling-lgd-with-proportional-odds-model), I’ve shown how to estimate a standard Cumulative Logit model with the ordinal::clm function and its use case in credit risk models. To better a better illustration of the underlying logic, an example is also provided below, showing how to estimate a Cumulative Logit model by specifying the log likelihood …