nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2008‒04‒04
five papers chosen by
Philip Yu
Hong Kong University

  1. Detection of local interactions from the spatial pattern of names in France By Thierry Mayer
  2. Social Decision Theory: Choosing within and between Groups By Fabio Maccheroni; Massimo Marinacci; Aldo Rustichini
  3. The Value of Statistical Life and Cost-Benefit Evaluations of Landmine Clearance in Cambodia By Michael Cameron; John Gibson; Kent Helmers; Steven Lim; John Tressler; Kien Vaddanak
  4. A Cost Benefit Analysis for the Extension Plan of Osaka Monorail Loop-line (in Japanese) By Junyi SHEN; Yusuke SAKATA; Yoshizo HASHIMOTO
  5. The Causal Relationship between Individual’s Choice Behavior and Self-Reported Satisfaction: the Case of Residential Mobility in the EU By Luis Diaz-Serrano; Alexandrina P. Stoyanova

  1. By: Thierry Mayer (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: Using data on name distributions in 95 French d´epartements observed from 1946 to 2002, we investigate spatial and social mechanisms behind the transmission of parental preferences. Drawing inspiration from recent work on social interactions, we develop a simple discrete choice model that predicts a linear relationship between choices by agents in one location and the choices made in neighboring areas. We explain the shares of parents that give their children Saint, Arabic, and American-type names. In a second exercise we examine the effect of distance between locations on dierences in name-type shares. In our last exercise we consider dissimilarity in actual names rather than name-types. Using Manhattan Distances as our metric, we find a steady and substantial decline in the importance of geographic distance. Meanwhile, differences in class and national origins have increasing explanatory power.
    Date: 2008
  2. By: Fabio Maccheroni; Massimo Marinacci; Aldo Rustichini
    Abstract: We introduce a theoretical framework in which to study interdependent preferences, where the outcome of others affects the preferences of the decision maker. The dependence may take place in two conceptually different ways, depending on how the decision maker evaluates what the others have. In the first he values his outcome and that of others on the basis of his own utility. In the second, he ranks outcomes according to a social value function. These two different views of the interdependence have separate axiomatic foundations. We then characterize preferences according to the relative importance assigned to social gains and losses, or in other words to pride and envy. Finally, we study a two period economy in which agents have our social preferences. We show how envy leads to conformism in consumption behavior and pride to diversity.
    Keywords: Social preferences, social economics.
    JEL: D81 E21
    Date: 2008
  3. By: Michael Cameron (University of Waikato); John Gibson (University of Waikato); Kent Helmers (Independent Consultant); Steven Lim (University of Waikato); John Tressler (University of Waikato); Kien Vaddanak (Cambodian Red Cross)
    Abstract: Development agencies spend approximately US$400 million per year on landmine clearance. Yet many cost-benefit evaluations suggest that landmine clearance is socially wasteful because costs appear to far outweigh social benefits. This paper presents new estimates of the benefits of clearing landmines based on a contingent valuation survey in two provinces in rural Cambodia where we asked respondents questions that elicit their tradeoffs between money and the risk of death from landmine accidents. The estimated Value of a Statistical Life (VSL) is US$0.4 million. In contrast, most previous studies of landmine clearance use foregone income or average GDP per capita, which has a lifetime value of only US$2,000 in Cambodia. Humanitarian landmine clearance emerges as a more attractive rural development policy when appropriate estimates of the VSL are used.
    Keywords: benefit-cost analysis; contingent valuation; landmines; value of statistical life
    JEL: J17 O22
    Date: 2008–03–25
  4. By: Junyi SHEN (Assistant Professor, Osaka School of International Public Policy, Osaka University); Yusuke SAKATA (Associate Professor, School of Economics, Kinki University); Yoshizo HASHIMOTO (President, Osaka Prefectural Institute for Advanced Industry Development)
    Abstract: In this paper, under the consideration on both local environmental status and transportation network, we implement Cost Benefit Analysis (CBA) for the extension plan of Osaka Monorail Loop-line by applying a Choice Experiment (CE) method. It is estimated that the benefit cost (B/C) ratio is 1.35 under a basic scenario. In addition, with a consideration on different kinds of uncertainty in the future, a number of sensitivity analyses are implemented. The results of sensitivity analysis indicate that the possibility of generating net benefit is extremely high for the extension plan studied here.
    Keywords: cost benefit analysis; choice experiment method; monorail; environmental status; transportation network
    JEL: C25 D61 R42
    Date: 2008–03
  5. By: Luis Diaz-Serrano (IZA, CREB, GRIT. Department of Economics. Universitat Rovira i Virgili. Av. de la Universitat, 1. 43204 Reus (SPAIN).); Alexandrina P. Stoyanova (CREB, Department of Economic Theory. Universitat de Barcelona. Av. Diagonal, 690. 08028 Barcelona (SPAIN).)
    Abstract: One of the most persistent and lasting debates in economic research refers to whether the answers to subjective questions can be used to explain individuals’ economic behavior. Using panel data for twelve EU countries, in the present study we analyze the causal relationship between self-reported housing satisfaction and residential mobility. Our results indicate that: i) households unsatisfied with their current housing situation are more likely to move; ii) housing satisfaction raises after a move, and; iii) housing satisfaction increases with the transition from being a renter to becoming a homeowner. Some interesting cross-country differences are observed. Our findings provide evidence in favor of use of subjective indicators of satisfaction with certain life domains in the analysis of individuals’ economic conduct.
    Keywords: Housing satisfaction, residential mobility, homeownership, individual’s choice behavior.
    JEL: D1 R0 J0
    Date: 2008–03

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