nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2008‒10‒28
four papers chosen by
Philip Yu
Hong Kong University

  1. The Role of Accessibility in Passengers' Choice of Airports By Marco Kouwenhoven
  2. The Preferences of Trieste Inhabitants for the Re-use of the Old Port: A Conjoint Choice Experiment By Jérôme Massiani; Paolo Rosato
  3. Analyzing the determinants of willingness-to-pay values for testing the validity of the contingent valuation method. Application to home care compared to hospital care By Raphaël Remonnay; Nathalie Havet; Magali Morelle; Marie-Odile Carrère
  4. Incorporation and Taxation: Theory and Firm-level Evidence By Peter Egger; Christian Keuschnigg; Hannes Winner

  1. By: Marco Kouwenhoven
    Abstract: 1.INTRODUCTION; 1.1. Growth of regional airports; 1.2. Implications for policy makers; 1.3. Objective of this paper; 2. DEFINITIONS OF ACCESSIBILITY 3. ACCESS MODE CHOICE 3.1. Observed access mode shares 3.2. Factors influencing access mode choice behaviour 3.3. Modelling access mode choice behaviour 4. AIRPORT CHOICE 4.1. Factors influencing airport choice behaviour 4.2. Modelling airport choice behaviour 5. CASE STUDY: THE EFFECTS OF THE INTRODUCTION OF NEW RAIL MODES 5.1. Introduction 5.2. London Heathrow – Heathrow Express 5.3. London Gatwick – Gatwick Express 5.4. Oslo Gardermoen – Flytoget 5.5. Stockholm Arlanda – Arlanda Express 5.6. Conclusions 6. CASE STUDY: TICKET TAX IN THE NETHERLANDS 6.1. Introduction 6.2. AEOLUS model 6.3. Simulation of a ticket tax 6.4. Effects by segment 6.5. Final implementation 6.6. Conclusion 7. CONCLUSIONS 8. REFERENCES
    Keywords: academic libraries
    Date: 2008–08
  2. By: Jérôme Massiani (University of Trieste); Paolo Rosato (University of Trieste)
    Abstract: In many developed countries, abandoned (derelict or underused) industrial areas often occupy important parts of the cities. This raises issues about the possibilities of reusing these areas as well as on the conservation of industrial heritage they often entail. Conjoint Analysis (CA) can shed light on these issues as it can elicit the preferences of inhabitants for different scenarios of reuse. So far, only a limited number of applications of CA have been made on this topic. In this article, we present the results of a CA experiment on the reuse of a large, mainly abandoned, port area in Trieste (Italy) featuring buildings with some historical and industrial heritage value. Three hundred computer assisted interviews have been made on a representative sample of Trieste inhabitants, eliciting their preferences for different reuse hypotheses and building conservation scenarios. The survey explores two original topics: the impact of the time horizon of the payment (single or decennial special purpose tax) and the consideration of various mixes of future uses. The collected data have been processed using latent class and mixed logit models to explore heterogeneity among interviewees' preferences. Our findings show that, while preferences clearly emerge in favor of tourism and leisure oriented uses, preferences in terms of conservation and the impact of cost are much more difficult to measure. This difficulty persists even when specified or non specified heterogeneity is taken into account, although Mixed Logit estimate provides more convincing results.
    Keywords: Land Use, Port, Trieste, Conjoint Analysis
    JEL: H43 R52 R10
    Date: 2008–09
  3. By: Raphaël Remonnay (GATE, University of Lyon, CNRS, ENS-LSH, Centre Léon Bérard, France); Nathalie Havet (GATE, University of Lyon, CNRS, ENS-LSH, Centre Léon Bérard, France); Magali Morelle (GATE, University of Lyon, CNRS, ENS-LSH, Centre Léon Bérard, France); Marie-Odile Carrère (GATE, University of Lyon, CNRS, ENS-LSH, Centre Léon Bérard, France)
    Abstract: The contingent valuation (CV) method is an attractive approach for comparing home care to hospital care in which the only difference is patients’ well-being during the treatment process and not health outcomes. We considered the empirical situation of blood transfusion (BT) in cancer patients and collected willingness to pay (WTP) values among BT users. Our main objective was to test the validity of the CV method, namely its ability to elicit true preferences. Firstly, possible determinants of WTP values and their expected influences were identified, from both economic and non economic literature and from the findings of a pilot study. Secondly, they were compared to predicted influences resulting from appropriate econometric analysis of WTP values elicited by a bidding process. From the health economics literature it appeared that the double-hurdle model is the most appropriate approach to account for zero values and protest responses. However, because the number of protest responses was too small, we used a truncated regression model. None of the 7 hypothesized influences was invalidated by econometric results. The anchoring bias hypothesis was confirmed. The WTP for home BT compared to hospital BT increased with household income, with previous experience of home care, with living far from the hospital and with low quality of life. Conversely, it was lower for advanced-stage (palliative or terminal) than for early-stage (curative) patients. We conclude that the CV approach is acceptable to severely ill patients. Moreover, WTP values demonstrate good validity given that influences predicted by our model are consistent with expected determinants.
    Keywords: contingent valuation , validity , protest responses , censored data , home care
    JEL: I1
    Date: 2008
  4. By: Peter Egger; Christian Keuschnigg; Hannes Winner
    Abstract: This paper provides theory and firm-level evidence on the incorporation decision of entrepreneurs in a model of corporate governance and taxation. The theory explains how the incorporation decision of entrepreneurs is driven by taxation (corporate and personal income taxes), corporate transparency, access to external capital and limited liability. We estimate features of this model using a large cross-section of more than 540, 000 firms in European manufacturing. The impact of taxation on the incorporation decision is at the heart of this analysis. We find that higher personal income tax rates and their progression are associated with an increase in the probability of incorporation, while higher corporate tax rates entail an impediment to incorporate. This finding is robust to the inclusion of other economic and institutional determinants and to a variety of functional form assumptions about the latent variable in the estimated discrete choice model.
    Keywords: Incorporation, governance, taxes, discrete choice models
    JEL: H25 H73 F23 C21
    Date: 2008–09

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