nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2011‒11‒28
three papers chosen by
Philip Yu
Hong Kong University

  1. Intergenerational Transmission of Risk Attitudes: A Revealed Preference Approach By Andrea Leuermann; Sarah Necker
  2. Welfare, Labor Supply and Heterogeneous Preferences: Evidence for Europe and the US By Bargain, Olivier; Decoster, André; Dolls, Mathias; Neumann, Dirk; Peichl, Andreas; Siegloch, Sebastian
  3. University rankings in action? The importance of rankings and an excellence competition for university choice of high-ability students? By Horstschräer, Julia

  1. By: Andrea Leuermann; Sarah Necker
    Abstract: This study investigates whether the willingness to take income risks revealed by occupational choice is transmitted from parents to their children. Using data from the German Socio-Economic Panel (SOEP), we find that fathers' riskiness of job is a significant determinant of children's occupational risk, in particular sons' (excluding parent-child pairs with identical occupations). This is the first piece of evidence for intergenerational transmission of risk attitudes relying on real world behavior. It shows that not only individuals' own assessments of their risk attitudes correlate (found by previous studies) but also risk preferences shown in exactly the same situation.
    Keywords: Risk preferences, intergenerational transmission, occupational choice
    JEL: D12 D81 J24
    Date: 2011
  2. By: Bargain, Olivier (University of Aix-Marseille II); Decoster, André (K.U.Leuven); Dolls, Mathias (IZA); Neumann, Dirk (IZA); Peichl, Andreas (IZA); Siegloch, Sebastian (IZA)
    Abstract: Following the report of the Stiglitz Commission, measuring and comparing well-being across countries has gained renewed interest. Yet, analyses that go beyond income and incorporate non-market dimensions of welfare most often rely on the assumption of identical preferences to avoid the difficulties related to interpersonal comparisons. In this paper, we suggest an international comparison based on individual welfare rankings that fully retain preference heterogeneity. Focusing on the consumption-leisure trade-off, we estimate discrete choice labor supply models using harmonized microdata for 11 European countries and the US. We retrieve preference heterogeneity within and across countries and analyze several welfare criteria which take into account that differences in income are partly due to differences in tastes. The resulting welfare rankings clearly depend on the normative treatment of preference heterogeneity with alternative metrics. We show that these differences can indeed be explained by estimated preference heterogeneity across countries – rather than demographic composition.
    Keywords: welfare measures, preference heterogeneity, labor supply, Beyond GDP
    JEL: C35 D63 H24 H31 J22
    Date: 2011–11
  3. By: Horstschräer, Julia
    Abstract: This paper analyzes how high-ability students respond to different indicators of university quality when applying for a university. Are some quality dimensions of a ranking, e.g. research reputation or mentoring more important than others? I estimate a random utility model using administrative application data of all German medical schools. As identification relies on the variation in quality indicators over time, I can disentangle the response to changes in quality indicators from the common knowledge regarding the overall university attractiveness. Results show that the ranking provides more relevant information in the quality dimensions mentoring, infrastructure and students' satisfaction than with respect to research. --
    Keywords: Higher education,university choice,college admission,conditional logit
    JEL: I21 I23 I28 C25
    Date: 2011

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