|
on Discrete Choice Models |
| By: | Andrén, Daniela (Department of Business, Economics, Statistics and Informatics); Andrén, Thomas (National Institute of Economic Research and IZA) |
| Abstract: | Welfare persistence is estimated and compared between Swedish-born and foreign-born households during the 1990s. This is done within the framework of a dynamic discrete choice model controlling for the initial condition and permanent unobserved heterogeneity. We control for three types of persistence in terms of observed and unobserved heterogeneity, serial correlation, and structural state dependence, the focus being on the latter measure. The results show that state dependence in Swedish welfare participation was strong. This effect was three times as large for the foreign-born compared to Swedish-born, but when this effect is distributed over time, it disappears after three years for both groups. Contrary to previous studies, our results for foreignborn are that both country of origin and time in the country of destination have only small impacts on welfare participation. |
| Keywords: | social assistance; welfare persistence; state dependence; unobserved heterogeneity; initial condition; dynamic probit model; GHK simulator |
| JEL: | I30 I38 J18 |
| Date: | 2012–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2012_001&r=dcm |
| By: | Arne Strauss; Kalyan Talluri |
| Abstract: | The dynamic program for choice network RM is intractable and approximated by a deterministic linear program called the CDLP. When the segment consideration sets overlap, the CDLP is difficult to solve. A weaker formulation (SDCP+) is tractable and approximates the CDLP value very closely. We show that if the segment consideration sets follow a tree structure, the two problems are equivalent, and give a counterexample to show that cycles can induce a gap between CDLP and the relaxation. |
| Keywords: | discrete-choice models, network revenue management, consideration sets |
| JEL: | C61 L93 L83 M11 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:606&r=dcm |
| By: | Andreas Lange (University of Hamburg, Germany); Andreas Ziegler (University of Kassel, Germany, and ETH Zurich, Switzerland) |
| Abstract: | This paper studies the voluntary provision of public goods that is partially driven by a desire to offset for individual polluting activities. We first extend existing theory and show that offsets allow a reduction in effective environmental pollution levels while not necessarily extending the consumption of a polluting good. We further show a nonmonotonic income-pollution relationship and derive comparative static results for the impact of an increasing environmental preference on purchases of offsets and mitigation activities. Several theoretical results are then econometrically tested using a novel data set on activities to reduce CO2 emissions for the case of vehicle purchases in the U.S. and Germany. We show that an increased environmental preference triggers the use of CO2 offsetting and mitigation channels in both countries. However, we find strong country differences for the purchase of CO2 offsets. While such activities are already triggered by a high general awareness of the climate change problem in the U.S., driver’s license holders in Germany need to additionally perceive road traffic as being responsible for CO2 emissions to a large extent. |
| Keywords: | public good, voluntary provision, climate change, CO2 offsetting, vehicle purchase, discrete choice models |
| JEL: | C25 C35 H41 Q54 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:12-161&r=dcm |