nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2015‒12‒20
six papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Monotone stochastic choice models: The case of risk and time preferences By Jose Apesteguia; Miguel A. Ballester
  2. Farmers’ preferences for Fair Trade contracting in Benin By VLAEMINCK, Pieter; VRANKEN, Liesbet; VAN DEN BROECK, Goedele; VANDE VELDE, Katrien; RAYMAEKERS, Karen; MAERTENS, Miet
  3. Identifying Effects of Multivalued Treatments By Lee, Sokbae; Salanié, Bernard
  4. A note on sufficiency in binary panel models By Koen Jochmans; Thierry Magnac
  5. Consommation d’énergie et croissance économique en Afrique subsaharienne. By Florian Grosset; Phu Nguyen-Van
  6. Crowding in Public Transport: Who Cares and Why? By Luke Haywood; Martin Koning; Guillaume Monchambert

  1. By: Jose Apesteguia; Miguel A. Ballester
    Abstract: Suppose that, when evaluating two alternatives x and y by means of a parametric utility function, low values of the parameter indicate a preference for x and high values indicate a preference for y. We say that a stochastic choice model is monotone whenever the probability of choosing x is decreasing in the preference parameter. We show that the standard use of random utility models in the context of risk and time preferences may sharply violate this monotonicity property, and argue that their use in preference estimation may be problematic. In particular, they may pose identification problems and yield biased estimations. We then establish that the alternative random parameter models, in contrast, are always monotone. We show in an empirical application that standard risk-aversion assessments may be severely biased.
    Keywords: Stochastic Choice; Preference Parameters; Random Utility Models; Random Parameter Models; Risk Aversion; Delay Aversion.
    JEL: C25 D81
    Date: 2015–11
  2. By: VLAEMINCK, Pieter; VRANKEN, Liesbet; VAN DEN BROECK, Goedele; VANDE VELDE, Katrien; RAYMAEKERS, Karen; MAERTENS, Miet
    Abstract: Private standards – such as Fair Trade (FT) – have emerged as a response to consumer, civil society and corporate concern about the conditions under which imported food is produced. A large empirical literature exists on the welfare implications of smallholder participation in FT schemes and on consumers’ willingness to pay for ethical products. However, the question whether smallholder farmers prefer to produce under FT has never been studied. Understanding smallholders’ preferences is crucial in light of the main critiques on FT namely that the poorest smallholders are often excluded and that FT is too supply-driven. Using a choice experiment, we investigate preferences of rice smallholders for (organic) FT in Benin and compare the value of three contracts (domestic contract, FT, organic FT). We find that farmers prefer domestic contracts over FT contracts. They prefer contracts with fewer requirements but contract benefits can outweigh the costs related to these requirements in the case of FT contracts. This does not hold for FT contracts with organic standards. Our results imply that adding organic requirements to FT contracts may undermine the adoption and spread of FT certification and limit the expansion of FT production and trade.
    Keywords: Global value chains, Private standards, Contract-farming, Rice, Organic, Ethical certification, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, Q01, Q13, Q17, Q18, Q56,
    Date: 2015–11
  3. By: Lee, Sokbae; Salanié, Bernard
    Abstract: Multivalued treatment models have only been studied so far under restrictive assumptions: ordered choice, or more recently unordered monotonicity. We show how marginal treatment effects can be identified in a more general class of models. Our results rely on two main assumptions: treatment assignment must be a measurable function of threshold-crossing rules; and enough continuous instruments must be available. On the other hand, we do not require any kind of monotonicity condition. We illustrate our approach on several commonly used models; and we also discuss the identification power of discrete instruments.
    Keywords: Discrete Choice; Identification; Monotonicity; Treatment evaluation
    JEL: C14 C21
    Date: 2015–12
  4. By: Koen Jochmans (Département d'économie); Thierry Magnac (Groupe de recherche en économie mathématique et quantitative)
    Abstract: Consider estimating the slope coefficients of a fixed-effect binary-choice model from two-period panel data. Two approaches to semiparametric estimation at the regular parametric rate have been proposed. One is based on a sufficient statistic, the other is based on a conditional-median restriction. We show that, under standard assumptions, both approaches are equivalent.
    Keywords: binary choice, fixed effects, panel data, regular estimation, sufficiency.
    Date: 2015–12
  5. By: Florian Grosset; Phu Nguyen-Van
    Abstract: Cet article étudie la relation entre consommation d’énergie par habitant et revenu par habitant, ainsi que les déterminants de cette relation, sur un échantillon de données de panel de 29 pays d’Afrique subsaharienne observés sur la période 1980-2011. Notre spécificité est la prise en compte explicite de l’hétérogénéité entre pays à l’aide d’un modèle de données de panel à coefficients hétérogènes. Les résultats montrent que la relation énergie-revenu est effectivement très hétérogène, et que la courbe de Kuznets environnementale existe dans seulement 4 pays. Cette hétérogénéité est également observée dans les effets des variables affectant cette relation.
    Keywords: Consommation d’énergie, courbe de Kuznets environnementale, modèle à coefficients hétérogènes, données de panel.
    JEL: C23 O55 Q40
    Date: 2015
  6. By: Luke Haywood; Martin Koning; Guillaume Monchambert
    Abstract: Crowding on public transport (PT) is a major issue for commuters around the world. Nevertheless, economists have rarely investigated the causes of crowding discomfort. Furthermore, most evidence on the costs of PT crowding is based on contingent valuation studies. First, this paper assesses discomfort with PT crowding over different density levels, trip durations and across different individuals using a different methodology. Based on a survey of 1,000 Paris PT users, the negative, linear relationship of in-vehicle density on reported travel satisfaction is remarkably similar to previous studies investigating PT crowding costs and stable across most individual characteristics. Contrary to the identifying assumption of most contingent valuation studies, we find little increase in crowding costs over travel time, in line with an additive specification of the generalized PT cost function. Second, we investigate the causes of this discomfort effect. We identify three key drivers: (a) dissatisfaction with standing and not being seated; (b) less opportunities to make use of the time during the journey; (c) the physical closeness of other travellers per se.
    Keywords: Public transport, crowding, stated satisfaction, travel cost, survey data
    Date: 2015

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