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on Discrete Choice Models |
| By: | Zhentong Lu; Kenichi Shimizu |
| Abstract: | We propose a new approach to estimating the random coefficient logit demand model for differentiated products when the vector of market-product-level shocks is sparse. Assuming sparsity, we establish nonparametric identification of the distribution of random coefficients and demand shocks under mild conditions. Then we develop a Bayesian estimation procedure, which exploits the sparsity structure using shrinkage priors, to conduct inference about the model parameters and counterfactual quantities. Compared with the standard BLP (Berry, Levinsohn, and Pakes 1995) method, our approach does not require demand inversion or instrumental variables (IVs), and thus provides a compelling alternative when IVs are not available or their validity is questionable. Monte Carlo simulations validate our theoretical findings and demonstrate the effectiveness of our approach, while empirical applications reveal evidence of sparse demand shocks in well-known datasets. |
| Keywords: | Econometric and statistical methods; Market structure and pricing |
| JEL: | C1 C3 L00 D1 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:25-10 |
| By: | Fabien Giauque; Mehdi Farsi; Sylvain Weber; Michael Puntiroli |
| Abstract: | Using a discrete choice experiment (DCE), we analyze how social comparisons and financial information influence households' preferences and trade-offs among three sustainable electricity demand behaviors: conservation actions, efficiency investments, and purchasing a green power mix. Our results show that while a strong majority favors sustainable behaviors over inaction, both interventions significantly increase the likelihood of choosing inaction. Heterogeneity analyses reveal that this negative effect is driven by households with above-average consumption. Furthermore, our findings highlight conflicting motivational mechanisms, suggesting that financial information within normative messages may crowd out intrinsic motivation. |
| Keywords: | Electricity-saving behaviors, households' preferences, social comparisons, financial information; discrete choice experiment, mixed logit (MXL) model, crowding out effect |
| JEL: | D12 D91 Q48 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:irn:wpaper:25-02 |
| By: | Ulrike Lehr |
| Keywords: | Energy-Electric Power Energy-Rural Energy |
| Date: | 2023–11 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40629 |
| By: | Buchner, Martin; Rehm, Miriam |
| Abstract: | This paper aims to understand the health effects of energy poverty in Germany using SOEP panel data from 2010 to 2020. Linear probability models and fixed effects ordered logit models reveal a consistently negative relationship of three expendituresbased energy poverty indicators with general health. The association is stronger for the subjective energy poverty metric: members of households unable to keep the home comfortably warm due to financial reasons have an about 3.23 p.p. lower probability of being in at least satisfactory health. Investigating potential channels shows that mental health is consistently negatively linked to our energy poverty metrics, while physical health is weakly associated with energy poverty in Germany, with the exception of doctor visits. Finally, by instrumenting energy poverty with data on energy price indices and matching energy costs to the heating systems used by households, we show that living in a household that experiences a transition to energy poverty due to rising energy prices is also linked to a lower likelihood of being in good health. |
| Keywords: | energy poverty, health, fixed effects ordered logit models, Germany |
| JEL: | I10 I32 Q41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:313638 |
| By: | Claudia Vasquez Suarez; Roberto Estevez; Arcenio Torres |
| Keywords: | Environment-Adaptation to Climate Change Urban Development-Transport in Urban Areas |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40827 |