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on Discrete Choice Models |
| By: | Qian Chen (School of Public Finance & Public Policy, Central University of Finance & Economics, People's Republic of China); David E. Giles (Department of Economics, University of Victoria) |
| Abstract: | We examine the finite sample properties of the MLE for the Logit model with random covariates. We derive the second order bias and MSE function for the MLE in this model, and undertake some numerical evaluations to illustrate the analytic results. From these numerical results we find, for example, that the bias correction that we provide is effective, and that the bias-corrected estimator is more efficient than the uncorrected MLE. |
| Keywords: | Logit model, mean squared error, bias correction |
| JEL: | C01 C13 C25 |
| Date: | 2008–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:vic:vicewp:0801&r=dcm |
| By: | Yohei Kobayashi; Norifumi Yukutake |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:hst:hstdps:d07-248&r=dcm |
| By: | Pavlo R. Blavatskyy |
| Abstract: | This paper presents an axiomatic model of probabilistic choice under risk. In this model, when it comes to choosing one lottery over another, each alternative has a chance of being selected, unless one lottery stochastically dominates the other. An individual behaves as if he compares lotteries to a reference lottery—a least upper bound or a greatest lower bound in terms of weak dominance. The proposed model is compatible with several well-known violations of expected utility theory such as the common ratio effect and the violations of the betweenness. Necessary and sufficient conditions for the proposed model are completeness, weak stochastic transitivity, continuity, common consequence independence, outcome monotonicity, and odds ratio independence. |
| Keywords: | Probabilistic choice, first-order stochastic dominance, expected utility theory, random utility model, risk |
| JEL: | C91 D81 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:364&r=dcm |
| By: | Adrian Bruhin (Socioeconomic Institute, University of Zurich) |
| Abstract: | This study compares the performance of Prospect Theory versus Stochastic Expected Utility Theory at fitting data on decision making under risk. Both theories incorporate well-known deviations from Expected Utility Maximization such as the Allais paradox or the fourfold pattern of risk attitudes. Stochastic Expected Utility Theory parsimoniously extends the standard microeconomic model, whereas Prospect Theory, the benchmark for aggregate choice so far, is based on psychological findings. First, the two theories' fit to representative choice is assessed for two experimental data sets, one Swiss and one Chinese. In a second step, finite mixture regressions reveal a consistent mix of two different behavioral types suggesting that researchers may take individual heterogeneity into account in order to avoid aggregation bias. |
| Keywords: | stochastic expected etility theory, prospect theory, finite mixture models |
| JEL: | D81 C49 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:soz:wpaper:0803&r=dcm |
| By: | Dekker, Ronald |
| Abstract: | This paper uses 11 years of data from household panel data sets for the Netherlands, Germany and Great-Britain to investigate part-time employment and the role of institutions and preferences on transitions from part-time into full-time employment or into other employment statuses. The behavioural choice model distinguishes four labour market states: short hours part-time employment, long hours part-time employment, full-time employment and nonparticipation. This dynamic model is estimated with a multinomial logit model. Results from the estimates are interpreted against the background of the institutional differences between the three countries. In particular we look at the role of stated preferences on the number of working hours on the transition patterns of individual workers. Results indicate that both the Netherlands and Great-Britain as welfare states are more capable of facilitating workers to end up in their preferred hours bracket than Germany is. |
| Keywords: | part-time employment; labour supply; stated preferences |
| JEL: | J62 C23 J22 C25 |
| Date: | 2008–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8029&r=dcm |
| By: | massiani, jerome |
| Abstract: | The intention of the present article is to shed light on the heterogeneity of value of time among shippers. In order to deal with this issue, we first look at the reasons for which different shippers may value a time saving differently. This analysis makes use of a distinction between generic goods and specific (tailor made) goods. Subsequently, we analyse how this heterogeneity could be represented in the framework of Mixed Logit which is increasingly popular among the Transport Science research community. We concentrate on the issue of the selection of an adequate distribution for the random coefficients of time and costs attributes. In the final part of this article, we make an estimate of the value of time heterogeneity using data collected from shippers in Italy. |
| Keywords: | Value of time; freight transportation; Mixed Logit. |
| JEL: | R41 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8211&r=dcm |