nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2013‒11‒14
four papers chosen by
Edoardo Marcucci
Universita' di Roma Tre

  1. The Impact of Education on the Behaviour of Labor Supply in Cameroon: an Analysis using the Nested Multinomial Logit Model By Nga Ndjobo, Patrick Marie; Abessolo, Yves André
  2. Money for novelty: The role of venture capital investments for innovation in young technology-based firms By Heger, Diana
  3. Anatomy of international banking crises at the onset of the Great Recession By Stolbov, Mikhail
  4. A Note on 'Sourcing Decisions with Stochastic Supplier Reliability and Stochastic Demand' By Van Delft , Christian; Vial , Jean-Philippe

  1. By: Nga Ndjobo, Patrick Marie; Abessolo, Yves André
    Abstract: This article renders an analysis of the impact of education on labour supply behaviour, particularly in terms of participation decision and the level of employment and unemployment of the active population in the labour market in Cameroon, through the nested logit model. Using data obtained from the database of ECAM III carried out in 2007, we find that individuals who constitute the labour supply being faced with four alternatives (domestic activities, the informal, the public and the private formal sectors) choose to work in the sectors which best values their education. Thus, for these individuals, it is more likely to choose to practice in the sectors associated with lower levels of education than other sectors. Also, these individuals have the tendency of orientating their choices primarily to sectors in which the average level of education is at most equivalent to theirs. Therefore, signals sent by job-seekers to employers, requesting access demand to certain sectors instead of others are obviously determine by their various levels of education. Moreover, participation in a sector of the job market in Cameroon is a decreasing function of average charged income and average worked hours that are established.
    Keywords: education, labor supply, nested multinomial logit, public formal, private formal and informal sectors, ECAMIII, Cameroon
    JEL: C35 C51 D1 I2 J22 J24
    Date: 2013–11–02
  2. By: Heger, Diana
    Abstract: This paper examines the role of venture capital on a firm's innovation activities by using a data set of German technology-based firms founded between 1996 and 2005. Innovation is proxied by patent counts and an index of innovativeness which reflects the degree to which a young firm has developed new technologies based on its own or external resources. The results show that VC financing has a positive impact on both patenting and innovativeness, even if we account for endogeneity of VC financing. --
    Keywords: innovation,venture capital,young technology-based firms,discrete choice methods,count data models,endogeneity
    JEL: O31 G24 C31 C35 L20
    Date: 2013
  3. By: Stolbov, Mikhail
    Abstract: The paper examines a wide range of potential predictors of 25 international banking crises that broke out in 2007–2011 on the basis of cross–sectional logit models and the BCT (binary classification tree) algorithm, a novel technique in assessing the causes of banking crises. The major determinants of the crises arise from excessive credit depth (measured as private credit to GDP ratio) and illiquidity of the banking sector (credits to deposits ratio). The implementation of explicit deposit insurance schemes is also a pro–crisis factor due to the moral hazard effect they tend to cause. On the contrary, higher values of remittance inflows to GDP decrease the susceptibility to banking crises. These findings are robust under both methodologies. Lower bank concentration, bigger values of cost to income ratios as well as a higher level of economic liberalization make countries more vulnerable to banking crises, as derived from the logit analysis.
    Keywords: banking crises, Great Recession, logit analysis, binary classification tree
    JEL: E44 G21
    Date: 2013–10–26
  4. By: Van Delft , Christian; Vial , Jean-Philippe
    Abstract: Burke, Carillo and Vakharia [2009] consider a class of single product sourcing problems with a stochastic demand and multiple uncertain suppliers. Assuming that the demand is independent of the supplier reliabilities and uniformly distributed, they propose to write the expected profit as a quadratic function and derive a closed form expression for the optimal orders. We show that this formula is true only under special circumstances, which are not satisfied in many practical situations of interest. We give an exact formulation and solution procedure, holding under general assumptions. We illustrate our point by a complementary analysis of the numerical examples given in the quoted paper
    Keywords: product sourcing; stochastic demand; suppliers; demand; sourcing
    JEL: G00
    Date: 2013–04–01

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