nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2009‒02‒22
two papers chosen by
Philip Yu
Hong Kong University

  1. Are there Gender-specific Preferences for Location Factors? A Grouped Conditional Logit-Model of Interregional Migration Flows in Germany By Lutz Schneider; Alexander Kubis
  2. The Effects of Product Ageing on Demand: The Case of Digital Cameras By Lou, Weifang; Prentice, David; Yin, Xiangkang

  1. By: Lutz Schneider; Alexander Kubis
    Abstract: The article analyses the question whether women and men differ in their tastes for location factors. The question is answered by quantifying the impact of location characteristics on interregional migration flows across Germany. The analysis is based on a grouped conditional logit approach. We augment the framework by controlling for violation of the independence of irrelevant alternatives assumption and for overdispersion. As a result, we find no differences in terms of direction of impact. However, the regressions confirm gender differences in terms of intensity, particularly regarding regional wage levels and the availability of educational institutions.
    Keywords: Labour Mobility; Gender Economics; Regional Migration; Discrete Choice Model
    JEL: C25 J61 J16 R23
    Date: 2009–02
  2. By: Lou, Weifang; Prentice, David; Yin, Xiangkang
    Abstract: The static differentiated product demand model when applied to products with rapid product turnover and declining prices, yields implausible results. One response is to explicitly model the inter-temporal choices of consumers but computational demands require restrictive assumptions on consumer heterogeneity and limits on the characteristics included in the model. We propose, instead, to supplement the static model with a control for the age that each product has been in the market. This approach is applied to the US digital camera market and we find we obtain more plausible estimates. Our results are consistent with inter-temporal price discrimination by firms. Furthermore, our results suggest that ignoring the effects of product ageing may result in substantially overestimated price elasticities and technological progress and underestimated price-cost markups.
    Keywords: Discrete Choice; Demand Dynamics; Forward-Looking Behavior; Heterogeneous Preferences.
    JEL: L0 L11 D12 D43 L63
    Date: 2008–11–03

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