nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2021‒04‒05
four papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Choice of solutions to the initial-conditions problem in dynamic panel probit models By Riccardo (Jack) Lucchetti; Claudia Pigini
  2. Potential substitutes for critical materials in white LEDs: Technological challenges and market opportunities By Pierre Gaffuri; Elena Stolyarova; Daniel Llerena; Estelle Appert; Marianne Consonni; Stéphane Robin; Vincent Consonni
  3. Updating stochastic choice By Carlos Alós-Ferrer; Maximilian Mihm
  4. Beds or bonds? Conditional solidarity in the coronavirus crisis By Koos, Sebastian; Leuffen, Dirk

  1. By: Riccardo (Jack) Lucchetti (Dipartimento di Scienze Economiche e Sociali (DiSES), Università Politecnica delle Marche); Claudia Pigini (Dipartimento di Scienze Economiche e Sociali (DiSES), Università Politecnica delle Marche)
    Abstract: Estimation of random-effects dynamic probit models for panel data entails the so-called “initial conditions problem”. We argue that the relative finite-sample performance of the two main competing solutions is driven by the magnitude of the individual unobserved heterogeneity and/or of the state dependence in the data. We investigate our conjecture by means of a comprehensive Monte Carlo experiment and offer useful indications for the practitioner.
    Keywords: Panel data, dynamic probit, initial conditions
    JEL: C23 C25
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:ven:wpaper:2020:27&r=all
  2. By: Pierre Gaffuri (LMGP - Laboratoire des matériaux et du génie physique - CNRS - Centre National de la Recherche Scientifique - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, NEEL - Institut Néel - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Elena Stolyarova (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Daniel Llerena (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Estelle Appert (LMGP - Laboratoire des matériaux et du génie physique - CNRS - Centre National de la Recherche Scientifique - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Marianne Consonni (CEA-LETI - Commissariat à l'énergie atomique et aux énergies alternatives - Laboratoire d'Electronique et de Technologie de l'Information - DRT (CEA) - Direction de Recherche Technologique (CEA) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives); Stéphane Robin (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Vincent Consonni (LMGP - Laboratoire des matériaux et du génie physique - CNRS - Centre National de la Recherche Scientifique - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: White light emitting diodes (wLEDs) have become, in the last decade, the most efficient device for most lighting applications. They are mainly composed of indium and gallium for the blue emitting LED, and rare-earth elements for the phosphor producing the yellow component of the white light. Those elements are crucial to achieve the excellent lighting properties of wLEDs, but they are systematically ranked among the most critical materials. In the present review, the essential roles of indium, gallium and rare-earth elements in wLEDs are specified, and their criticality through the main criteria of supply shortage risk and economic importance is discussed in detail in the light of the wLED market. The opportunities and technological challenges of their reduction using nano-sized objects and substitution using non-critical materials are considered in relation to the resulting changes in the performance of wLEDs, but also to the stated preference of consumers of the final product, creating an opportunity for trade-offs between the performance and avoidance of critical materials in wLEDs. The economic value that a consumer could place in a critical material-free wLED is further estimated through a choice experiment conducted with 297 consumers. The results obtained show a positive, significant willingness to pay for critical material-free wLEDs. On average, consumers are ready to pay €2.82 more for a wLED sold at €10. The present approach addresses the transdisciplinary problem of the reduction and substitution of critical materials in functional devices intended for consumers, and can be generalized to other energy-related materials and devices.
    Keywords: Light emitting diode,Critical materials,Reduction and substitution,Technological alternatives,Sustainable materials,Consumer behavior
    Date: 2021–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03177349&r=all
  3. By: Carlos Alós-Ferrer; Maximilian Mihm
    Abstract: When an economic agent makes a choice, stochastic models predicting those choices can be updated. The structural assumptions embedded in the prior model condition the updated one, to the extent that the same evidence produces different predictions even when previous ones were identical. We provide a general framework for models of stochastic choice allowing for arbitrary forms of (structural) updating and show that different models can be sharply separated by their structural properties, leading to axiomatic characterizations. Our framework encompasses Bayesian updating given beliefs over deterministic preferences (as implied by popular random utility models) and standard neuroeconomic models of choice, which update decision values in the brain through reinforcement learning.
    Keywords: Stochastic preferences, Bayesian learning, logit choice, reinforcement, neuroeconomic theory
    JEL: D01 D81
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:zur:econwp:381&r=all
  4. By: Koos, Sebastian; Leuffen, Dirk
    Abstract: The coronavirus crisis exacerbates inequality in the European Union. It gives rise to a critical debate about the future of Europe concerning a key question: In what way does the project of integration require a higher degree of European solidarity? To what extent are Europeans willing to help each other, and what kind of help are they willing to provide? The results from a recent survey of the German residential population, presented in this paper, offer a mixed picture: Whereas people strongly support medical solidarity, their willingness to support fi nancial redistribution is limited. As a consequence, it will be crucial to use ideational leadership to activate the potential for solidarity towards a united, viable Europe marked by limited inequality—especially with the German Council Presidency commencing on July 1st, 2020.
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:cexpps:01&r=all

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