nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2023‒04‒24
eleven papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Measuring Stochastic Rationality By Efe A. Ok; Gerelt Tserenjigmid
  2. Nudging and Subsidizing Farmers to Foster Smart Water Meter Adoption By Benjamin Ouvrard; Raphaële Préget; Arnaud Reynaud; Laetitia Tuffery
  3. Investigation of the Convex Time Budget Experiment by Parameter Recovery Simulation By Keigo Inukai; Yuta Shimodaira; Kohei Shiozawa
  4. Allocation Choice in Charitable Giving: A Natural Field Experiment By Theodor Kouro
  5. Transition Probabilities and Identifying Moments in Dynamic Fixed Effects Logit Models By Kevin Dano
  6. Consumer behavior towards imported dairy products: a cross-cultural analysis of products from three origins in Ghana and Senegal By Boimah, Mavis; Weible, Daniela
  7. Characteristic Function of the Tsallis $q$-Gaussian and Its Applications in Measurement and Metrology By Viktor Witkovsk\'y
  8. Ranked Choice Bedlam in a 2022 Oakland School Director Election By David McCune
  9. Is car sharing in Australia socio-spatially equitable? By Bilas, Angeline
  10. Functional-Coefficient Quantile Regression for Panel Data with Latent Group Structure By Xiaorong Yang; Jia Chen; Degui Li; Runze Li
  11. A Dynamic Fixed Effects and Nonlinear Causality Approach to analyze CO2 Emissions By Tomás Baioni

  1. By: Efe A. Ok; Gerelt Tserenjigmid
    Abstract: We develop a partial ordering approach toward comparing stochastic choice functions on the basis of their rationality. We do this by assigning to any stochastic choice function a one-parameter class of deterministic choice correspondences, and then checking for the rationality (in the standard sense of revealed preference) of these correspondences for each parameter value. Similar to the classical notion of deterministic rationality, our rationality ordering detects violations of (stochastic) transitivity as well as inconsistencies between choices from nested menus. We obtain an easy-to-use characterization of this ordering, and then use that characterization to introduce an index of stochastic rationality. We apply our ordering and index to some well-known stochastic choice models and provide an empirical application using a famous experiment by Amos Tversky.
    Date: 2023–03
  2. By: Benjamin Ouvrard (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Arnaud Reynaud (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laetitia Tuffery (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: We use a discrete choice experiment with treatments to test if voluntary adoption of smart water meters by French farmers can be fostered by i) a collective conditional subsidy offered to farmers who adopt a smart meter only if the rate of adoption in their geographic area is sufficiently high, and ii) informational nudges. Using a sample of 1, 272 farmers, we find contrasted results regarding our nudges, but we show that a conditional subsidy is an effective tool to foster adoption of smart meters. Interestingly, the willingness to pay for the conditional subsidy is equal to the subsidy amount and independent of the collective adoption threshold.
    Keywords: Choice experiment, Nudges, French farmers, Smart water meters, incentives
    Date: 2023
  3. By: Keigo Inukai; Yuta Shimodaira; Kohei Shiozawa
    Abstract: The convex time budget (CTB) method is a widely used experimental technique for eliciting an individual’s time preference in intertemporal choice problems. This paper investigates the accuracy of the estimation of the discount factor parameter and the present bias parameter in the quasi-hyperbolic discounting utility function for the CTB experiment. In this paper, we use a simulation technique called “parameter recovery.” We found that the precision of present bias parameter estimation is poor within the scope of previously reported parameter estimates, making it difficult to detect the effect of present bias. Our results recommend against using a combination of the CTB experimental task and the quasi-hyperbolic discounting utility model to explore the effect of present bias. This paper contributes to addressing the replicability issue in experimental economics and highlights the importance of auditing the accuracy of parameter estimates before conducting an experiment.
    Date: 2022–08
  4. By: Theodor Kouro
    Abstract: This study examines whether charitable giving increases if donors have more choice about how their donations are used. In a field experiment, employees of large Albanian companies were asked to donate to projects administered by Down Syndrome Albania. Treatments varied in whether participants were allowed (or forced) to choose between different projects, and in the amount of information they were given. Giving donors a choice substantially increased giving; information did not. Our setting allows us to consider various mechanisms that could underlie this behavior. We conclude that allocation choice mainly increases donations because donors can target projects they like.
    Keywords: charitable giving; allocation choice; forced allocation, preferences; increased agency; information;
    Date: 2023–03
  5. By: Kevin Dano
    Abstract: This paper introduces an algebraic approach to derive identifying moments in dynamic logit models with strictly exogenous regressors and additive fixed effects. It is based upon two common features in this class of models. First, many (individual-specific) transition probabilities can be expressed as conditional expectations of functions of the data and common parameters given the initial condition, the regressors and the fixed effects. We call such functions transition functions. Second, after a certain time period, multiple transition functions map to the same transition probabilities. This motivates a differencing strategy leveraging the multiplicity of transition functions to produce valid moment conditions in panels of adequate length. We detail the construction of identifying moments in scalar models of arbitrary lag order as well as first-order panel vector autoregressions and dynamic multinomial logit models. A simulation study illustrates the small sample performance of GMM estimators based on our methodology.
    Date: 2023–02
  6. By: Boimah, Mavis; Weible, Daniela
    Abstract: The growing exports of European dairy products to West Africa is raising concerns globally with regards to its role in the retarded growth of the dairy sectors in recipient nations. Focusing on consumers, this study examines the influence of product origin on consumer behavior in Ghana and Senegal, two developing countries with high patterns of dairy imports mainly from Europe. A total of 312 and 532 households were sampled for the study in Ghana and Senegal respectively. In the analysis, we used descriptive statistics, Principal Component Analysis, and a logit model. The results show that socio-demographic characteristics, especially age, household size, education and income play crucial roles in the consumption of local, domestic and imported dairy products. Moreover, product origin influence consumer perceptions, and hence preferences. Consumers generally reveal a positive attitude towards local dairy products in both countries. However, final purchase decisions as the study show are to a large extent influenced by product price and availability, encouraging the consumption of imported and domestic products. Milk powder and its domestically processed products obviously play a crucial role in ensuring a reliable access to affordable dairy products in developing countries, and in this facet, their imports are encouraged. However, hygienic handling and processing of local milk in addition to good packaging and labelling are essential.
    Keywords: International Relations/Trade, International Relations/Trade
    Date: 2022
  7. By: Viktor Witkovsk\'y
    Abstract: The Tsallis $q$-Gaussian distribution is a powerful generalization of the standard Gaussian distribution and is commonly used in various fields, including non-extensive statistical mechanics, financial markets, and image processing. It belongs to the $q$-distribution family, which is characterized by a non-additive entropy. Due to their versatility and practicality, $q$-Gaussians are a natural choice for modeling input quantities in measurement models. This paper presents the characteristic function of a linear combination of independent $q$-Gaussian random variables and proposes a numerical method for its inversion. The proposed technique enables the assessment of the probability distribution of output quantities in linear measurement models and the conduct of uncertainty analysis in metrology.
    Date: 2023–03
  8. By: David McCune
    Abstract: The November 2022 ranked choice election for District 4 School Director in Oakland, CA, was very interesting from the perspective of social choice theory. The election did not contain a Condorcet winner and exhibited downward and upward monotonicity paradoxes, for example. Furthermore, an error in the settings of the ranked choice tabulation software led to the wrong candidate being declared the winner. This article explores the strange features of this election and places it in the broader context of ranked choice elections in the United States.
    Date: 2023–03
  9. By: Bilas, Angeline (Monash University)
    Abstract: This paper investigates the impact of car sharing services (GoGet and Flexicar) on transport equity in Melbourne and Brisbane, Australia, including two lower socio-economic regions of Melbourne. The results show evidence of strong latent demand for car sharing services in these areas, indicating the potential for car sharing to improve access to transport and transport equity for disadvantaged communities. The study also finds that the main barriers to the adoption of car sharing were lack of availability, cost and lack of awareness. The findings suggest that expanding car sharing services could improve transport equity outcomes in low socio-economic areas.
    Keywords: car sharing ; transport equity ; low socio-economic regions JEL classifications: N7 ; N77
    Date: 2023
  10. By: Xiaorong Yang; Jia Chen; Degui Li; Runze Li
    Abstract: This paper considers estimating functional-coefficient models in panel quantile regression with individual effects, allowing the cross-sectional and temporal dependence for large panel observations. A latent group structure is imposed on the heterogenous quantile regression models so that the number of nonparametric functional coefficients to be estimated can be reduced considerably. With the preliminary local linear quantile estimates of the subject-specific functional coefficients, a classic agglomerative clustering algorithm is used to estimate the unknown group structure and an easy-to-implement ratio criterion is proposed to determine the group number. The estimated group number and structure are shown to be consistent. Furthermore, a post-grouping local linear smoothing method is introduced to estimate the group-specific functional coefficients, and the relevant asymptotic normal distribution theory is derived with a normalisation rate comparable to that in the literature. The developed methodologies and theory are verified through a simulation study and showcased with an application to house price data from UK local authority districts, which reveals different homogeneity structures at different quantile levels.
    Date: 2023–03
  11. By: Tomás Baioni
    JEL: Q56 Q51
    Date: 2021–11

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