nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2006‒07‒02
five papers chosen by
Philip Yu
Hong Kong University

  1. An Almost Integration-free Approach to Ordered Response Models By Bernard M.S. van Praag; Ada Ferrer-i-Carbonell
  2. Borda and the Maximum Likelihood Approach to Vote Aggregation By Michel Truchon
  3. Social Choice, Optimal Inference and Figure Skating By Stephen Gordon; Michel Truchon
  4. Statistical Comparison of Aggregation Rules for Votes By Michel Truchon; Stephen Gordon
  5. Can migration reduce educational attainment ? Evidence from Mexico By Rapopor t, Hillel; McKenzie, David

  1. By: Bernard M.S. van Praag (Universiteit van Amsterdam, CESifo, IZA, & SCHOLAR); Ada Ferrer-i-Carbonell (Universiteit van Amsterdam, SCHOLAR, AIAS Amsterdam Institute of Labour Studies)
    Abstract: In this paper we propose an alternative approach to the estimation of ordered response models. We show that the Probit-method may be replaced by a simple OLS-approach, called P(robit)OLS, without any loss of efficiency. This method can be generalized to the analysis of panel data. For large-scale examples with random fixed effects we found that computing time was reduced from 90 minutes to less than one minute. Conceptually, the method removes the gap between traditional multivariate models and discrete variable models
    Keywords: Categorical data; Ordered probit model; Ordered response models; Subjective data; Subjective well-being
    JEL: C25
    Date: 2006–05–22
  2. By: Michel Truchon
    Abstract: Drissi-Bakhkhat and Truchon ["Maximum Likelihood Approach to Vote Aggregation with Variable Probabilities," Social Choice and Welfare, 23, (2004), 161-185.] extend the Condorcet-Kemeny-Young maximum likelihood approach to vote aggregation by relaxing the assumption that the probability of correctly ordering two alternatives is the same for all pairs of alternatives. They let this probability increase with the distance between the two alternatives in the true order, to reflect the intuition that a judge or voter is more prone to errors when confronted to two comparable alternatives than when confronted to a good alternative and a bad one. In this note, it is shown than, for a suitably chosen probability function, the maximum likelihood rule coincides with the Borda rule, thus, partially reconciling the Borda and the Condorcet methods.
    Keywords: Vote aggregation, ranking rules, maximum likelihood, Borda
    JEL: D71
    Date: 2006
  3. By: Stephen Gordon; Michel Truchon
    Abstract: We approach the social choice problem as one of optimal statistical inference. If individual voters or judgtes observe the true order ona set of alternatives with error, then it is possible to use the set of individual rankings to make probability statements about the correct social order. Given the posterior distribution for orders and a suitably chosen loss function, an optimal order is one that minimises expected posterior loss. The paper develops a statistical model describing the behaviour of judges, and discusses Markov Chain Monte Carlo estimation. We also discuss criteria for choosing the appropriate loss functions. We apply our methods to a well-known problem: determining the correct ranking for figure skaters competing at the Olympic Games.
    Keywords: Vote aggregation, ranking rules, figure skating, Bayesian methods, optimal inference, Markov Chain Monte Carlo
    JEL: D71 C11
    Date: 2006
  4. By: Michel Truchon; Stephen Gordon
    Abstract: If individual voters observe the true ranking on a set of alternatives with error, then the social choice problem, that is, the problem of aggregating their observations, is one of statistical inference. This study develops a statistical methodology that can be used to evaluate the properties of a given or aggregation rule. These techniques are then applied to some well-known rules.
    Keywords: Vote aggregation, ranking rules, figure skating, maximum likelihood, optimal inference, Monte Carlo, Kemeny, Borda
    JEL: D71 C15
    Date: 2006
  5. By: Rapopor t, Hillel; McKenzie, David
    Abstract: The authors examine the impact of migration on educational attainment in rural Mexico. Using historical migration rates by state to instrument for current migration, they find evidence of a significant negative effect of migration on schooling attendance and attainment of 12 to 18 year-old boys and 16 to 18 year-old girls. IV-Censored Ordered Probit results show that living in a migrant household lowers the chances of boys completing junior high school and of boys and girls completing high school. The negative effect of migration on schooling is somewhat mitigated for younger girls with low educated mothers, which is consistent with remittances relaxing credit constraints on education investment for the very poor. However, for the majority of rural Mexican children, family migration depresses educational attainment. Comparison of the marginal effects of migration on school attendance and on participation in other activities shows that the observed decrease in schooling of 16 to 18 year-olds is accounted for by the current migration of boys and increased housework for girls.
    Keywords: Education For All,Primary Education,Teaching and Learning,Anthropology,Child Labor
    Date: 2006–06–01

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