nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2014‒06‒22
six papers chosen by
Edoardo Marcucci
Universita' di Roma Tre

  1. Income taxation, labour supply and housework: a discrete choice model for French couples By Jan Kabatek; Arthur Van Soest; Elena Stancanelli
  2. Immigrants' location choice in Belgium By Hubert Jayet; Glenn Rayp; Ilse Ruyssen; Nadiya Ukrayinchuk
  3. Estimating capabilities with structural equation models: How well are we doing in a 'real' world? By Jaya Krishnakumar; Florian Wendelspiess Chávez Juárez
  4. Farmers’ preferences for climate-smart agriculture an assessment in the Indo-Gangetic plain: By Taneja, Garima; Pal, Barun Deb; Joshi, Pramod Kumar; Aggarwal, Pramod; Tyagi, N.K.
  5. Sensitive survey questions: Measuring attitudes regarding female circumcision through a list experiment By De Cao, Elisabetta; Lutz, Clemens
  6. Heterogeneity in the Value of Life By Joseph E. Aldy; Seamus J. Smyth

  1. By: Jan Kabatek (Tilburg University [Tilburg] - Netspar); Arthur Van Soest (Tilburg University [Tilburg] - Netspar); Elena Stancanelli (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: Earlier studies suggest that income taxation may affect not only labour supply but also domestic work. Here we investigate the impact of income taxation on partners' labour supply and housework, using data for France that taxes incomes of married couples jointly. We estimate a household utility model in which the marginal utilities of leisure and housework of both partners are modelled as random coefficients, depending on observed and unobserved characteristics. We conclude that both partners' market and housework hours are responsive to changes in the tax system. A policy simulation suggests that replacing joint taxation of married spouses' incomes with separate taxation would increase the husband's housework hours by 1.3% and reduce his labour supply by 0.8%. The wife's market hours would increase by 3.7%, and her housework hours would fall by 2.0%.
    Keywords: Time use; Taxation; Discrete choice models
    Date: 2014–04
  2. By: Hubert Jayet (EQUIPPE - ECONOMIE QUANTITATIVE, INTEGRATION, POLITIQUES PUBLIQUES ET ECONOMETRIE - Université Lille I - Sciences et technologies - Université Lille II - Droit et santé - Université Lille III - Sciences humaines et sociales - PRES Université Lille Nord de France); Glenn Rayp (Department of Economics and SHERPPA - Ghent University); Ilse Ruyssen (UCL - universite catholique louvain - universite catholique louvain - Université Catholique de Louvain (UCL) - Belgique); Nadiya Ukrayinchuk (EQUIPPE - ECONOMIE QUANTITATIVE, INTEGRATION, POLITIQUES PUBLIQUES ET ECONOMETRIE - Université Lille I - Sciences et technologies - Université Lille II - Droit et santé - Université Lille III - Sciences humaines et sociales - PRES Université Lille Nord de France)
    Abstract: This paper analyses migratory streams to Belgian municipalities between 1994-2007. The Belgian population register constitutes a rich and unique database of yearly migrant inflows and stocks broken down by nationality, which allows us to empirically explain the location choice of immigrants at municipality level. Speci cally, we aim at separating the network ef- fect, captured by the number of previous arrivals, from other location-speci c characteristics such as local labor or housing market conditions and the presence of public amenities. We expect labor and housing market variables to operate at diff erent levels and develop a fixed eff ects nested model of location choice in which an immigrant fi rst chooses a broad area, roughly corresponding to a labor market, and subsequently chooses a municipality within this area. We fi nd that the spatial repartition of immigrants in Belgium is determined by both network eff ects and local characteristics. The determinants of local attractiveness vary by nationality, as expected, but for all nationalities, they seem to dominate the impact of network eff ects.
    Keywords: Migration ; Location choice ; Network e ffects, Nested logit ; Immigrants ; Belgium
    Date: 2014–06–16
  3. By: Jaya Krishnakumar; Florian Wendelspiess Chávez Juárez
    Abstract: Measuring capabilities is a major challenge for the operationalization of the capability approach. Structural equation models (SEM) are being increasingly used as one possible methodology for estimating capabilities, but a certain skepticism remains about their appropriateness. In this paper, we perform a unique simulation experiment for testing the validity of such estimators. Using an agent-based modeling tool, we simulate a 'real' life scenario with individuals of heterogeneous characteristics and behaviors, having different capability sets, and making different decisions. We then run a SEM (MIMIC) model on the data generated in this simulated world to estimate the individual capabilities. Our results support the idea that SEM can coherently estimate the true capabilities. We find that using the linear predictor from the structural part of the SEM provides better results than using the 'classical' factor scores based on the full model.
    Keywords: latent variable model, MIMIC, SEM, simulation, capability approach
    JEL: C10 C15 D63 I00 I20
    Date: 2014–06
  4. By: Taneja, Garima; Pal, Barun Deb; Joshi, Pramod Kumar; Aggarwal, Pramod; Tyagi, N.K.
    Abstract: This study was undertaken to assess farmers’ preferences and willingness to pay (WTP) for various climate-smart interventions in the Indo-Gangetic Plain. The research outputs will be helpful in integrating farmers’ choices with government programs in the selected regions. The Indo-Gangetic Plain (IGP) was selected because it is highly vulnerable to climate change, which may adversely affect the sustainability of the rice-wheat production system and the food security of the region. Climate-smart agriculture (CSA) can mitigate the negative impacts of climate change and improve the efficiency of the rice-wheat-based production system. CSA requires a complete package of practices to achieve the desired objectives, but adoption is largely dependent on farmers’ preferences and their capacity and WTP.
    Keywords: Climate change, food security, Agricultural technology, Willingness to pay, Climate-smart agriculture, scoring method, bidding method,
    Date: 2014
  5. By: De Cao, Elisabetta; Lutz, Clemens (Groningen University)
    Abstract: A list experiment is designed to measure the attitudes among women toward Female Genital Mutilation (FGM) by using new data collected in Ethiopia. The results of multivariate regression methods recently developed for the list experiments show that educated women are less in favor of FGM compared to the uneducated ones (6% versus 47%). Using the results of a direct question about FGM support, we show that the social desirability bias is the greatest among uneducated women. In particular, uneducated women that are targeted by a NGO intervention have a stronger incentive to reveal a biased answer.
    Date: 2014
  6. By: Joseph E. Aldy; Seamus J. Smyth
    Abstract: We develop a numerical life-cycle model with choice over consumption and leisure, stochastic mortality and labor income processes, and calibrated to U.S. data to characterize willingness to pay (WTP) for mortality risk reduction. Our theoretical framework can explain many empirical findings in this literature, including an inverted-U life-cycle WTP and an order of magnitude difference in prime-aged adults WTP. By endogenizing leisure and employing multiple income measures, we reconcile the literature's large variation in estimated income elasticities. By accounting for gender- and race-specific stochastic mortality and income processes, we explain the literature's black-white and female-male differences.
    JEL: D91 J17 Q51
    Date: 2014–06

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