nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2014‒12‒19
twelve papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Consumer’s Preference and Willingness to Pay for Different Turfgrass Varieties in the Southern Region of the United States By Ghimire, Monika; Boyer, Tracy A.; Chung, Chanjin; Moss, Justin Q.
  2. Bayesian Inference for a Semi-Parametric Copula-based Markov Chain By Azam, Kazim; Pitt, Michael
  3. Consumer Preferences for Quality and Safety Attributes of Duck in Restaurant Entrees: Is China A Viable Market for The U.S. Duck Industry? By Carnegie, Rachel; Wang, Holly; Widmar, Nicole; Ortega, David
  4. Environmental attitude and the demand for green electricity in the context of supplier choice: A case study of the New Zealand retail electricity market By Ndebele, Tom; Marsh, Dan
  5. Determinants of Land Allocation in a Multi-Crop Farming System: An Application of the Fractional Multinomial Logit Model to Agricultural Households in Mali By Allen, James E. IV
  6. Consumers’ Valuation for Reduced Salt Labeling: A Non-hypothetical Choice Experiment By Lee, Sang Hyeon; Han, Doo Bong; Caputo, Vincenzina; Nayga, Rodolfo M. Jr.
  7. EU Consumers’ Perceptions of Fresh-cut Fruit and Vegetables Attributes: a Choice Experiment Model By Baselice, Antonio; Colantuoni, Francesca; Lass, Daniel A.; Nardone, Gianluca; Stasi, Antonio
  8. Valuation of Ecosystem Services in the Southern Appalachian Mountains By Banzhaf, H. Spencer; Burtraw, Dallas; Chung Criscimagna, Susie; Cosby, Bernard J.; Evans, David A.; Krupnick, Alan; Siikamaki, Juha
  9. Visual Attribute Non-Attendance in a Food Choice Experiment: Results From an Eye-tracking Study By Van Loo, Ellen J.; Nayga, Rodolfo M. Jr.; Seo, Han-Seok; Verbeke, Wim
  10. Consumers’ Preferences for the Food Preparation Time and Identification of the Factors Influencing Time-saving Food Consumption Pattern By Kim, Elizabeth J.; Ahn, Byeong-il
  12. Estimation of dynamic discrete choice models by maximum likelihood and the simulated method of moments By Eisenhauer, Philipp; Heckman, James J.

  1. By: Ghimire, Monika; Boyer, Tracy A.; Chung, Chanjin; Moss, Justin Q.
    Abstract: This study determines the consumer’s preference for different turfgrass varieties using two different stated choice methods discrete choice and best-worst methods. Results shows that the ranking of turfgrass attributes were more homogenous across states using best-worst method compared to discrete choice method. These two methods yielded similar rankings for drought tolerant and low maintenance turf, but different rankings for shade tolerant and low purchase price turf.
    Keywords: Turfgrass, Discrete choice method, Best worst method, Willingness to pay, Consumer/Household Economics, Environmental Economics and Policy,
    Date: 2014
  2. By: Azam, Kazim (Vrije Universiteit, Amsterdam); Pitt, Michael (Department of Economics, University of Warwick)
    Abstract: This paper presents a method to specify a strictly stationary univariate time series model with particular emphasis on the marginal characteristics (fat tailedness, skewness etc.). It is the rst time in time series models with speci ed marginal distribution, a non-parametric speci cation is used. Through a Copula distribution, the marginal aspect are separated and the information contained within the order statistics allow to efficiently model a discretely-varied time series. The estimation is done through Bayesian method. The method is invariant to any copula family and for any level of heterogeneity in the random variable. Using count times series of weekly rearm homicides in Cape Town, South Africa, we show our method efficiently estimates the copula parameter representing the first-order Markov chain transition density. Key words: Bayesian copula ; discrete data ; order statistics ; semi-parametric ; time series. JEL classification: C11 ; C14 ; C20
    Date: 2014
  3. By: Carnegie, Rachel; Wang, Holly; Widmar, Nicole; Ortega, David
    Keywords: Consumer Preferences, Choice Experiment, China, Duck, Food Service Industry, Agribusiness, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2014
  4. By: Ndebele, Tom; Marsh, Dan
    Abstract: There is growing interest in non-market valuation research to explore the importance of attitudes and perceptions in explaining heterogeneity of preferences among consumers. Previous research on environmental attitude (EA) and its influence on preferences has been criticised for the non-systematic way in which researchers have measured EA. This paper investigates the effect of environmental attitude on the demand for green electricity in New Zealand, identifies groups (latent classes) with homogenous preferences, and estimates willingness (WTP) for “green” electricity in the context of supplier choice or switching. The New Ecological Paradigm (NEP) Scale is used to measure EA, and we examine the effect of using sub-scales of the NEP Scale on posterior class membership probabilities. To generate the data required for this research, an online choice experiments survey targeting residential electricity bill payers in New Zealand was conducted in February 2014. A usable sample of 224 respondents was achieved. Data was analysed using a latent class framework in which the integration of EA with stated choice is either direct via the utility function as interactions with the attribute levels of alternatives or as a variable in the class membership probability model. We identify three latent classes with different preferences for the attributes of electricity suppliers. A typical respondent with a high NEP Scale score is willing to pay on average $12.80 more per month on their power bill to secure a 10% increase in electricity generated from renewable energy sources compared to respondents with low NEP scores. Furthermore, the results suggest that the sub-scales of the NEP Scale are less accurate in assigning respondents to environmental classes and that the sub-scale with 5 items is less accurate than the sub-scale with 10 items.
    Keywords: electricity suppliers, choice experiments, “green” electricity, willingness to pay, latent class model, New Ecological Paradigm Scale, environmental attitude, New Zealand, Agribusiness, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,
    Date: 2014–08
  5. By: Allen, James E. IV
    Abstract: Effective food security work in developing countries, such as Mali, relies on a thorough understanding of the rural farming system. A common approach is to study land allocation decisions to specific crops. In accomplishing this, one challenge is to model all production outcomes in a multi-crop system. This paper attempts to overcome this challenge to study the determinants of household allocation to cotton, maize, sorghum, millet, and secondary crops. First, a reduced form of the agricultural household model helps to identify factors that explain land allocation to various crops. This framework is applied to survey data from six villages in Mali’s Koutiala Cercle. A fractional multinomial logit econometric model is used to estimate the effect of household and production attributes on shares of cotton, maize, sorghum, millet, and secondary crops simultaneously, the results of which are presented as average marginal effects. Among other results, the analysis shows that ethnic groups not native to the Koutiala Cercle are associated with significantly smaller shares of maize, and that villages with better market access are correlated with much higher shares of secondary crops and smaller shares of cotton. These results provide insights for policymakers on the role of cotton in farming system, the need to promote and develop better markets for coarse grains and secondary crops, and the importance of understanding the dynamic farming system in Mali’s Koutiala Cercle.
    Keywords: Mali, Land Allocation, Agricultural Household, Econometrics, Fractional Multinomial Logit, Farming Systems Research, Food Security and Poverty, International Development, Research Methods/ Statistical Methods,
    Date: 2014–05
  6. By: Lee, Sang Hyeon; Han, Doo Bong; Caputo, Vincenzina; Nayga, Rodolfo M. Jr.
    Keywords: Agricultural and Food Policy, Consumer/Household Economics, Health Economics and Policy,
    Date: 2014
  7. By: Baselice, Antonio; Colantuoni, Francesca; Lass, Daniel A.; Nardone, Gianluca; Stasi, Antonio
    Abstract: The fresh-cut sector is constantly evolving and innovating in order to enhance quality and safety of products, which attributes are generally valued by consumers. Quality and safety are multifaceted attributes because they arise from a wide set of methods/technologies, therefore the knowledge about consumers’ preferences for food technologies is still matter of debate. The present paper tests whether new fresh-cut fruit and vegetables (F&V) attributes influence consumers’ choices and preferences. At the same time, we are able to verify the influence of socio-demographic characteristics on consumers’ preferences. A Latent Class Multinomial Logit Model has been fitted for four different European countries: Greece, Italy, Spain and United Kingdom, in order to divide the consumers in different latent classes based on their choice and their characteristics. Fresh-cut F&V consumers for the four European countries, have a similar behavior in terms of preferences. We can divide the consumers in two different latent classes: the first made by consumers that do not appreciate any fresh-cut F&V attributes, and the second that include consumers that appreciate the several fresh-cut F&V attributes.
    Keywords: fresh-cut fruit and vegetables, consumers' preferences, Choice Experiment, Latent Class Model, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, C83, D12, Q18,
    Date: 2014
  8. By: Banzhaf, H. Spencer; Burtraw, Dallas (Resources for the Future); Chung Criscimagna, Susie; Cosby, Bernard J.; Evans, David A.; Krupnick, Alan (Resources for the Future); Siikamaki, Juha (Resources for the Future)
    Abstract: The concept of ecosystem services has become increasingly influential in conservation policy, uniting natural and social scientists in efforts to develop values for environmental benefits consistent with underlying ecological and social processes. Understanding the consequences for ecosystem services is crucial for crafting well-designed environmental policies and management practices. For example, in the United States, new air pollution policies are driving a reduction in atmospheric emissions of sulfur dioxide and reducing acid precipitation in the Southern Appalachians, which, in turn, is expected to contribute to the ecological recovery of the region. Linking detailed ecosystem modeling to stated preference methods, we illustrate how multidimensional ecosystems can be evaluated to identify policy priorities. We also report estimates of willingness to pay for these policies that can be used in benefit-cost analysis. We estimate these benefits to be $15.67 per year per household in the region to be achieved by 2060.
    Keywords: acidification, acid rain, ecosystem values, contingent valuation, choice experiments, willingness to pay, stated preference
    JEL: Q51 Q57
  9. By: Van Loo, Ellen J.; Nayga, Rodolfo M. Jr.; Seo, Han-Seok; Verbeke, Wim
    Abstract: Respondents in choice experiments (CEs) may ignore some of the attributes presented to them when evaluation alternatives in a choice task, which has been referred to as attribute non-attendance (ANA). Previous studies have shown that ANA may impact both the model fit as the WTP estimates for the presented attributes. We used a new approach and accounted for the issue of ANA, by using eye-tracking measures. By accounting for visual ANA, the coefficients from the ANA model differ from the model which did not account for this issue. This clearly indicates that assuming that respondents in a CE attended to all attributes in all of the choice tasks biases your estimation results.
    Keywords: Eye-tracking, sustainability labeling, Attribute non-attendance, Visual attention, Consumers, Decision making, Agricultural and Food Policy, Marketing, Research Methods/ Statistical Methods,
    Date: 2014
  10. By: Kim, Elizabeth J.; Ahn, Byeong-il
    Abstract: The main purpose of this study is to classify consumers according to their time allocation on food consumption and to analyze socioeconomic characteristics that affect time-saving food consumption pattern. We find out the determinants of time-saving food consumption lifestyle. Since the dependent variables we consider are the degrees of time saving, we employed the ordered logit model. Cross-sectional survey data in 2011, which includes 2,012 individuals, collected by the Agricultural Trade Company in Korea is used for the ordered logit model analysis.
    Keywords: Households, time allocation, food consumption lifestyle, cluster analysis, ordered logit model, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,
  11. By: Juana Sanchez
    Abstract: This paper uses new business micro data from the Business Research and Development and Innovation Survey (BRDIS) for the years 2008-2011 to relate the discrete innovation choices made by U.S. companies to features of the company that have long been considered to be important correlates of innovation. We use multinomial logit to model those choices. Bloch and Lopez-Bassols (2009) used the Community Innovation Surveys (CIS) to classify companies according dual, technological or output-based innovation constructs. We found that for each of those constructs of innovation combinations considered, manufacturing and engaging in intellectual property transfer increase the odds of choosing innovation strategies that involve more than one type of categories (for example, both goods and services, or both tech and non-tech) and radical innovations, controlling form size, productivity, time and type of R&D. Company size and company productivity as well as time do not lean the choices in any particular direction. These associations are robust across the three multinomial choice models that we have considered. In contrast with other studies, we have been able to use companies that do and companies that do not innovate, and this has allowed to rule out to some extent selectivity bias.
    Keywords: Innovation, R&D, productivity, intellectual property, generalized logistic regression, choice models
    Date: 2014–10
  12. By: Eisenhauer, Philipp; Heckman, James J.
    Abstract: We compare the performance of maximum likelihood (ML) and simulated method of moments (SMM) estimation for dynamic discrete choice models. We construct and estimate a simplified dynamic structural model of education that captures some basic features of educational choices in the United States in the 1980s and early 1990s. We use estimates from our model to simulate a synthetic dataset and assess the ability of ML and SMM to recover the model parameters on this sample. We investigate the performance of alternative tuning parameters for SMM.
    Date: 2014

This nep-dcm issue is ©2014 by Edoardo Marcucci. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.