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on Discrete Choice Models |
| By: | Eric French; Christopher Taber |
| Abstract: | This chapter discusses identification of common selection models of the labor market. We start with the classic Roy model and show how it can be identified with exclusion restrictions. We then extend the argument to the generalized Roy model, treatment effect models, duration models, search models, and dynamic discrete choice models. In all cases, key ingredients for identification are exclusion restrictions and support conditions. |
| Keywords: | Labor market |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:wp-2010-08&r=dcm |
| By: | Galina Ivanova (Faculty of Arts, Business, Informatics and Education at CQ University); John Rolfe (Faculty of Business and Informatics at Central Queensland University); Gail Tucker (Centre for Environmental Management at CQ University) |
| Abstract: | This paper presents the results of a choice modeling survey of households in Queensland to assess values for reductions in national greenhouse emissions by 2020. The study is novel in two main ways. First, labeled alternatives were used to assess whether the types of broad management options for reducing net emissions (green power, alternative technologies or carbon capture) are significant in understanding preferences for reducing emissions. Second, the importance of the level and type of uncertainty involved in reductions is tested. They include (1) the uncertainty of achieving emissions reduction and (2) the uncertainty of international participation as the percentage of total global emissions covered by international agreements. The results of this survey identified how choice responses vary when the level of uncertainty associated with emissions reduction options are included within choice alternatives. |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1067&r=dcm |
| By: | Birol, Ekin; Asare-Marfo, Dorene; Ayele, Gezahegn; Mensa-Bonsu, Akwasi; Ndirangu, Lydia; Okpukpara, Benjamin; Roy, Devesh; Yakhshilikov, Yorbol |
| Abstract: | In this paper we investigate the role of poultry in households’ livelihoods portfolios and the impact of supply-and-demand shocks that may be caused by highly pathogenic avian influenza (HPAI) on households’ various livelihoods outcomes in four Sub-Saharan African (SSA) countries. The study countries include Ethiopia and Kenya in East Africa and Ghana and Nigeria in West Africa. These countries represent a spectrum of SSA countries regarding disease status, means of disease spread, and the role of the poultry sector in the economy. By using nationally representative household-level secondary data and discrete choice methods (probit and zero-inflated negative binomial models), we profile the household, farm, and regional characteristics of those households that are most likely to keep poultry and those households that are most likely to be engaged in intensive poultry production (that is, to keep larger household flocks). We estimate the ex ante impact of HPAI outbreaks and scares/threats on livelihoods outcomes by using the propensity score matching approach. The results of this study generate valuable information regarding the role of poultry in the livelihoods of small-scale poultry-producing households and the livelihoods impacts of HPAI-induced supply-and-demand shocks. Such information is critical for the design of targeted, and hence effective, HPAI control and mitigation policies. |
| Keywords: | Agricultural growth and technologies, demand shock, highly pathogenic avian influenza (HPAI), Livelihoods, probit model, Propensity score matching, supply shock, zero-inflated negative binomial model, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1011&r=dcm |
| By: | Jacob Ladenburg (Danish Institute of Governmental Research); Jens Olav Dahlgaard (Danish Institute of Governmental Research); Ole Bonnichsen (Institute of Food and Resource Economics, University of Copenhagen) |
| Abstract: | The application of stated preference methods rests on the assumption that respondents act rationally and that their demand for the non-market good on the hypothetical market is equal to what their real demand would be. Previous studies have shown that this is not the case and this gap is known as hypothetical bias. The present paper attempts to frame the description of the hypothetical market so as to induce more “true market behaviour” in the respondents by including a short Cheap Talk script. The script informs respondents that in similar studies using stated preference methods, people have a tendency to overestimate how much they are willing to pay compared to their actual (true) willingness to pay. Applying a two-split sample approach to a Choice Experiment study focusing on preferences for reducing visual disamenities from offshore wind farms, the Cheap Talk script is found to be a preference mover, but does not affect preferences significantly. Significant effects are found when relating the effect of the Cheap Talk script to the cost levels of the alternatives, in that female respondents are found to choose higher cost alternatives less frequently when presented with the Cheap Talk script, while male respondents are not affected. |
| Keywords: | Cheap Talk, Stated Preferences, Choice Experiment, Hypothetical Bias, Gender |
| JEL: | C10 C51 C90 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2010_11&r=dcm |