nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2015‒12‒12
two papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Modelling mode choice within couples By Nathalie Picard; Sophie Dantan; André De Palma
  2. Dynamics of innovation and internationalization among Vietnamese SMEs By Trinh, Long

  1. By: Nathalie Picard (Université Paris Saclay, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - Université de Cergy Pontoise, Department of Economics, Ecole Polytechnique - CNRS - Centre National de la Recherche Scientifique - Polytechnique - X); Sophie Dantan (ENS Cachan - École normale supérieure - Cachan, Université Paris Saclay); André De Palma (ENS Cachan - École normale supérieure - Cachan, Department of Economics, Ecole Polytechnique - CNRS - Centre National de la Recherche Scientifique - Polytechnique - X, Université Paris Saclay)
    Abstract: We analyze couples mode choice, with an application in Paris region. When spouses’ commuting decisions are assumed to be independent – the standard assumption – the model poorly reproduces intra-household decisions. We set up a model of joint decision, which provides more plausible results and exhibits a greater predictive power. We estimate the determinants of the bargaining power (spouses’ age, nationality, type of job contract, tenure status and number of children) using a collective model. To control remaining endogeneity issues, we finally model the joint choice of car ownership and mode choice. Values of time are computed for driving alone and together.
    Keywords: endogeneity, collective models,Commuting, mode choice, unitary models, car ownership
    Date: 2015–10
  2. By: Trinh, Long
    Abstract: Innovation and internationalization have been considered as the major sources of growth for a long time. Various theoretical models suggest a bi-directional causality relationship between these two decisions. However, so far there is limited empirical evidence on whether there is a dynamic interdependence of innovation and internationalization decisions among SME firms in developing countries. Using a dynamic bivariate probit model and adopting a broader definition of internationalization, this paper analyzes the dynamic interdependence of internationalization and innovation decisions at the firm level in a developing country, by using a rich panel data set of SMEs collected biannually from 2005 to 2013 in Vietnam. Our empirical results show a high persistence in process, product innovations and internationalization decisions. Furthermore, we find that, for non-micro firms (i.e. firms with at least six fulltime permanent workers), past internationalization has a positive effect on process innovation but past process innovation do not has a significant effect on internationalization decision of these firms. For this group of firms, we also find signs of cross-dependence between process innovation and internationalization decision. Our empirical results, however, does not show dynamic interdependence between internationalization and product innovation. For micro firms, we do not find any evidence relating to interdependence of internationalization and both types of innovation.
    Keywords: internationalization, process innovation, product innovation, persistence of innovation, dynamic random effect bivariate probit, SME, Vietnam
    JEL: F14 L20 O31
    Date: 2015–12

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