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Choice Models (choice + models)
Kinds of Choice Models Selected AbstractsNONPARAMETRIC CONTINUOUS/DISCRETE CHOICE MODELS,INTERNATIONAL ECONOMIC REVIEW, Issue 4 2007Whitney K. Newey Modeling choices that are both discrete and continuous is important in several settings. The purpose of this article is to explore formulation and identification of such models when indirect utility functions are specified nonparametrically. Here we consider general nonseparable disturbances. We give identification results for nonseparable sample selection models and use these to analyze identification of discrete/continuous choice models. [source] Bounds on Parameters in Panel Dynamic Discrete Choice ModelsECONOMETRICA, Issue 3 2006Bo E. Honoré Identification of dynamic nonlinear panel data models is an important and delicate problem in econometrics. In this paper we provide insights that shed light on the identification of parameters of some commonly used models. Using these insights, we are able to show through simple calculations that point identification often fails in these models. On the other hand, these calculations also suggest that the model restricts the parameter to lie in a region that is very small in many cases, and the failure of point identification may, therefore, be of little practical importance in those cases. Although the emphasis is on identification, our techniques are constructive in that they can easily form the basis for consistent estimates of the identified sets. [source] Panel Data Discrete Choice Models with Lagged Dependent VariablesECONOMETRICA, Issue 4 2000Bo E. Honoré In this paper, we consider identification and estimation in panel data discrete choice models when the explanatory variable set includes strictly exogenous variables, lags of the endogenous dependent variable as well as unobservable individual-specific effects. For the binary logit model with the dependent variable lagged only once, Chamberlain (1993) gave conditions under which the model is not identified. We present a stronger set of conditions under which the parameters of the model are identified. The identification result suggests estimators of the model, and we show that these are consistent and asymptotically normal, although their rate of convergence is slower than the inverse of the square root of the sample size. We also consider identification in the semiparametric case where the logit assumption is relaxed. We propose an estimator in the spirit of the conditional maximum score estimator (Manski (1987)) and we show that it is consistent. In addition, we discuss an extension of the identification result to multinomial discrete choice models, and to the case where the dependent variable is lagged twice. Finally, we present some Monte Carlo evidence on the small sample performance of the proposed estimators for the binary response model. [source] Commentary: What Is the Right Price in Discrete Choice Models of Health Plan Choice?HEALTH SERVICES RESEARCH, Issue 6p1 2007Roger Feldman First page of article [source] Panel Data Discrete Choice Models with Lagged Dependent VariablesECONOMETRICA, Issue 4 2000Bo E. Honoré In this paper, we consider identification and estimation in panel data discrete choice models when the explanatory variable set includes strictly exogenous variables, lags of the endogenous dependent variable as well as unobservable individual-specific effects. For the binary logit model with the dependent variable lagged only once, Chamberlain (1993) gave conditions under which the model is not identified. We present a stronger set of conditions under which the parameters of the model are identified. The identification result suggests estimators of the model, and we show that these are consistent and asymptotically normal, although their rate of convergence is slower than the inverse of the square root of the sample size. We also consider identification in the semiparametric case where the logit assumption is relaxed. We propose an estimator in the spirit of the conditional maximum score estimator (Manski (1987)) and we show that it is consistent. In addition, we discuss an extension of the identification result to multinomial discrete choice models, and to the case where the dependent variable is lagged twice. Finally, we present some Monte Carlo evidence on the small sample performance of the proposed estimators for the binary response model. [source] Using Decision Tree Induction Systems for Modeling Space-Time BehaviorGEOGRAPHICAL ANALYSIS, Issue 4 2000T. A. Arentze Discrete choice models are commonly used to predict individuals' activity and travel choices either separately or simultaneously in activity-scheduling models. This paper investigates the possibilities of decision tree induction systems as an alternative approach. The ability of decision trees to represent heuristic decision rules is evaluated and a method of capturing interactions across decisions in a sequential decision model is outlined. Decision tree induction algorithms, such as C4.5, CART, and CHAID, are suited to derive the decision rules from empirical data. A case study to illustrate the approach considers decisions of individuals when they are faced with the choice to combine different out-of-home activities into a multipurpose, multistop trip or make a trip for each activity separately. Data from a large-scale activity diary survey are used to induce the decision rules. Possible directions of future research are identified. [source] Influence of Race on Household Residential UtilityGEOGRAPHICAL ANALYSIS, Issue 3 2000M William Sermons Residential location choice models are an important tool employed by urban geographers, planners, and transportation engineers for understanding household residential location behavior and for predicting future residential location activity. Racial segregation and residential racial preferences have been studied extensively using a variety of analysis techniques in social science research, but racial preferences have generally not been adequately incorporated into residential location choice models. This research develops residential location choice model specifications with a variety of alternative methods of addressing racial preferences in residential location decisions. The research tests whether social class, family structure, and in-group racial preferences are sufficient to explain household sensitivity to neighborhood racial composition. The importance of the interaction between the proportion of in-group race neighbors and other-race neighbors is also evaluated. Models for the San Francisco Bay metropolitan area are estimated and evidence of significant avoidance behavior by households of all races is found. The results suggest that social class differences, family structure differences, and in-group racial preferences alone are not sufficient to explain household residential racial preference and that households of all races practice racial avoidance behavior. Particularly pronounced avoidance of black neighbors by Asian households, Hispanic neighbors by black households, and Asian neighbors by white households are found. Evidence of a decrease in household racial avoidance intensity in neighborhoods with large numbers of own-race neighbors is also found. [source] Deleting ,irrational' responses from discrete choice experiments: a case of investigating or imposing preferences?HEALTH ECONOMICS, Issue 8 2006Emily Lancsar Abstract Investigation of the ,rationality' of responses to discrete choice experiments (DCEs) has been a theme of research in health economics. Responses have been deleted from DCEs where they have been deemed by researchers to (a) be ,irrational', defined by such studies as failing tests for non-satiation, or (b) represent lexicographic preferences. This paper outlines a number of reasons why deleting responses from DCEs may be inappropriate after first reviewing the theory underpinning rationality, highlighting that the importance placed on rationality depends on the approach to consumer theory to which one ascribes. The aim of this paper is not to suggest that all preferences elicited via DCEs are rational. Instead, it is to suggest a number of reasons why it may not be the case that all preferences labelled as ,irrational' are indeed so. Hence, deleting responses may result in the removal of valid preferences; induce sample selection bias; and reduce the statistical efficiency and power of the estimated choice models. Further, evidence suggests random utility theory may be able to cope with such preferences. Finally, we discuss a number of implications for the design, implementation and interpretation of DCEs and recommend caution regarding the deletion of preferences from stated preference experiments. Copyright © 2006 John Wiley & Sons, Ltd. [source] NONPARAMETRIC CONTINUOUS/DISCRETE CHOICE MODELS,INTERNATIONAL ECONOMIC REVIEW, Issue 4 2007Whitney K. Newey Modeling choices that are both discrete and continuous is important in several settings. The purpose of this article is to explore formulation and identification of such models when indirect utility functions are specified nonparametrically. Here we consider general nonseparable disturbances. We give identification results for nonseparable sample selection models and use these to analyze identification of discrete/continuous choice models. [source] Comparison of updating techniques in transferability analysis of work trip mode choice models in developing countriesJOURNAL OF ADVANCED TRANSPORTATION, Issue 2 2010Djoen San Santoso Abstract This study analyzes the performances of updating techniques in transferability of mode choice models in developing countries. A model specification, estimated in Ho Chi Minh City, was transferred to Phnom Penh. Naïve transfer and four updating methods associated with small sized samples were used in the transfer process and were evaluated based on statistical perspective and predictive ability. The study also illustrates the problems faced in model transferability development, due to the lack of available and suitable data in Phnom Penh. This lack is strongly related to different methods and structures applied in collecting the data. Simplified approaches to the difficulties are proposed in the study. The results show that updating ASCs, updating both ASCs and scale parameter, and use of combined transfer estimators all produce significant improvement, both statistically and in predictability, in updating the model. The last two methods have proven to be superior to the first method, owing to the inclusion of transfer bias considerations in the estimations. However, small data samples should not have large transfer bias when using combined transfer estimators. It is also concluded that naïvely transferring a model is not recommended, and Bayesian updating should be avoided when transfer bias exists. Copyright © 2010 John Wiley & Sons, Ltd. [source] The evaluation of high occupancy vehicle lanes on sun yat-sen freeway in TaiwanJOURNAL OF ADVANCED TRANSPORTATION, Issue 2 2005Rong-Chang Jou Abstract This study proposes a methodological framework to incorporate latent factors, including direct and indirect perceptions, as the explanatory variables in a discrete choice models using revealed preference and stated preference data sets. The methodology requires the estimation of a model system comprising of a discrete choice model and the structural and measurement equations of a latent variable model. The application involves the evaluation of responses to the new high occupancy vehicle (HOV) lanes on the Sun Yat-Sen Freeway in Taiwan. The results obtained from this study provide valuable insights into the planning and assessment of HOV lanes. [source] Value of leisure time based on individuals' mode choice behaviorJOURNAL OF ADVANCED TRANSPORTATION, Issue 2 2004Ming-Shong Shiaw Abstract Values of time have been defined in various forms such as value of leisure time (shadow price of time), value of travel time, and value of saving time, and are mostly measured based on individuals' travel choice behavior. The main purpose of this study is to estimate the value of leisure time by general mode choice models. The estimated level can be used to evaluate the benefits from the increasing leisure time gained by people in Taiwan after the government has practiced a series of policies to shorten employee's working hours in the last few years. To justify the application, this study reviews and reinterprets the theoretical results of some major works on value of time derivations. Then to practically estimate the value of leisure time, it suggests a method of combining revealed preference and stated preference data for application. Finally, it conducts an empirical study on travelers' mode choices behavior in Taiwan to carry out the method suggested. The value of leisure time is estimated at 56NT$ per hour (around 1.65US$/hr), which is even lower than the minimum wage rate regulated by Taiwan government. [source] Testing the assumptions of the ideal despotic distribution with an unpredictable food supply: experiments in juvenile salmonJOURNAL OF ANIMAL ECOLOGY, Issue 2 2005AMANDA MACLEAN Summary 1Models linking the behaviours of individual animals, their positions within socially complex groups and spatio-temporal variation in resource distribution offer a promising base for predicting population responses to changing environments. The ideal free and despotic distributions and their derivatives are particularly influential in this regard. 2Due to the difficulties of conducting work in the wild, for some groups of animals such models are often based on observations of animals in small-scale systems under conditions that are well controlled, but unnaturally simple. 3Using an experimental system based on field observations of home range size and variation in food availability, the present study tested whether models derived using small-scale laboratory observations are valid for juvenile Atlantic salmon in more natural conditions. 4Contrary to predictions, we found no differences in behaviour between the control fish (which experienced consistently rich feeding patches) and the experimental fish (which experienced unpredictable 10-fold changes in patch quality). 5Also contrary to predictions, in the variable condition, salmon used high quality patches (which were an order of magnitude better than low quality patches) only marginally (5%) more than would be expected if they were to forage at random. There was significant variation in foraging strategies between individual fish, with 28% of the population making non-random use of foraging patches. 6The only apparent systematic relationship between social rank and use of foraging patches was that fish that were both dominant and made many moves between feeding locations tended to leave rich patches less frequently than they left poor patches. 7Despite the low correlation between patch quality and movement, there was substantial movement of fish among patches. Forty-four per cent of moves followed aggressive interactions and most others were spontaneous, with no obvious motivating factor apparent. 8The study exposes a discrepancy between expectations derived from the basic concepts of patch choice theory and the behaviour of Atlantic salmon in the conditions pertaining in the present study. 9It is suggested that this discrepancy may arise both from the fact that applicability of patch choice models may be very sensitive to the stability of differences in patch quality and from uncertainties about the costs of habitat sampling. [source] Meta-analysis in model implementation: choice sets and the valuation of air quality improvementsJOURNAL OF APPLIED ECONOMETRICS, Issue 6 2007H. Spencer Banzhaf This research illustrates how the methods developed for meta-analysis can serve to document and summarize voluminous information derived from repeated sensitivity analyses. Our application is to the sensitivity of welfare estimates derived from discrete choice models to assumptions about the choice set. These assumptions affect welfare estimates through both the estimated parameters of the model and, conditional on the parameters, the substitution among alternatives. In our specific application, the evaluation is in terms of estimated benefits of air quality improvements in Los Angeles based on discrete choices of neighborhood and housing. Copyright © 2007 John Wiley & Sons, Ltd. [source] The Determinants of Being Unbanked for U.S. ImmigrantsJOURNAL OF CONSUMER AFFAIRS, Issue 1 2006SHERRIE L. W. RHINE Random-effects binary choice models are estimated to identify the attributes that influence the likelihood that immigrants are unbanked. This study finds that the likelihood to be unbanked is higher for immigrants with less education, poverty-level income, or a larger family but lower for immigrants with greater net worth or higher income. Among immigrant groups, Mexican and other Latin American immigrants have the highest rates of being unbanked. Programs aimed at helping immigrants move into the financial mainstream may benefit from taking into account the differences in socioeconomic attributes and migration experiences of specific populations. [source] Why should I be generous when I have valued and accessible alternatives?JOURNAL OF ORGANIZATIONAL BEHAVIOR, Issue 5 2004Alternative exchange partners An Erratum has been published for this article in Journal of Organizational Behavior 26(7) 2005, 873. Previous research on the relationship between alternative employment opportunities and cooperation has neglected the distinction between evaluations and restrictions. Thus, one cannot analyze the relationship between attractiveness of alternative employment opportunities and organizational citizenship behaviors (OCB) under different levels of perceived ease of finding alternative employment. In a pilot study with N,=,149 German employees, we confirm the proposed distinction with confirmatory factor analyses. Based on power-dependence theory and rational choice models, we predict that under high ease the relationship between attractiveness and OCB should be more strongly negative than under conditions of low ease. In addition, we hypothesize that the interaction between attractiveness and ease should be greater for OCB than for task performance because task performance is exchanged in a relationship with an enforceable, binding contract, while OCB is voluntarily. Results from moderated multiple regression analysis on N,=,86 German professional,supervisor dyads support our prediction for a negative relationship between attractiveness and OCB under high ease. Under low ease, we find a positive relationship between attractiveness and OCB. Moreover, there was no relationship with the interaction and task performance. Implications of the findings both for extra-role and job mobility theory formation and research are discussed. Copyright © 2004 John Wiley & Sons, Ltd. [source] Heterogeneity in dynamic discrete choice modelsTHE ECONOMETRICS JOURNAL, Issue 1 2010Martin Browning Summary, We consider dynamic discrete choice models with heterogeneity in both the levels parameter and the state dependence parameter. We first present an empirical analysis that motivates the theoretical analysis which follows. The theoretical analysis considers a simple two-state, first-order Markov chain model without covariates in which both transition probabilities are heterogeneous. Using such a model we are able to derive exact small sample results for bias and mean squared error (MSE). We discuss the maximum likelihood approach and derive two novel estimators. The first is a bias corrected version of the Maximum Likelihood Estimator (MLE) although the second, which we term MIMSE, minimizes the integrated mean square error. The MIMSE estimator is always well defined, has a closed-form expression and inherits the desirable large sample properties of the MLE. Our main finding is that in almost all short panel contexts the MIMSE significantly outperforms the other two estimators in terms of MSE. A final section extends the MIMSE estimator to allow for exogenous covariates. [source] Consistent estimation of binary-choice panel data models with heterogeneous linear trendsTHE ECONOMETRICS JOURNAL, Issue 2 2006Alban Thomas Summary, This paper presents an extension of fixed effects binary choice models for panel data, to the case of heterogeneous linear trends. Two estimators are proposed: a Logit estimator based on double conditioning and a semiparametric, smoothed maximum score estimator based on double differences. We investigate small-sample properties of these estimators with a Monte Carlo simulation experiment, and compare their statistical properties with standard fixed effects procedures. An empirical application to land renting decisions of Russian households between 1996 and 2002 is proposed. [source] Discrete choice and stochastic utility maximizationTHE ECONOMETRICS JOURNAL, Issue 1 2003Ruud H. Koning Discrete choice models are usually derived from the assumption of random utility maximization. We consider the reverse problem, whether choice probabilities are consistent with maximization of random utilities. This leads to tests that consider the variation of these choice probabilities with the average utilities of the alternatives. By restricting the range of the average utilities we obtain a sequence of tests with fewer maintained assumptions. In an empirical application, even the test with the fewest maintained assumptions rejects the hypothesis of random utility maximization. [source] Are Statistical Contributions to Medicine Undervalued?BIOMETRICS, Issue 1 2003Norman E. Breslow Summary. Econometricians Daniel McFadden and James Heckman won the 2000 Nobel Prize in economics for their work on discrete choice models and selection bias. Statisticians and epidemiologists have made similar contributions to medicine with their work on case-control studies, analysis of incomplete data, and causal inference. In spite of repeated nominations of such eminent figures as Bradford Hill and Richard Doll, however, the Nobel Prize in physiology and medicine has never been awarded for work in biostatistics or epidemiology. (The "exception who proves the rule" is Ronald Ross, who, in 1902, won the second medical Nobel for his discovery that the mosquito was the vector for malaria. Ross then went on to develop the mathematics of epidemic theory,which he considered his most important scientific contribution,and applied his insights to malaria control programs.) The low esteem accorded epidemiology and biostatistics in some medical circles, and increasingly among the public, correlates highly with the contradictory results from observational studies that are displayed so prominently in the lay press. In spite of its demonstrated efficacy in saving lives, the "black box" approach of risk factor epidemiology is not well respected. To correct these unfortunate perceptions, statisticians would do well to follow more closely their own teachings: conduct larger, fewer studies designed to test specific hypotheses, follow strict protocols for study design and analysis, better integrate statistical findings with those from the laboratory, and exercise greater caution in promoting apparently positive results. [source] The effect of environmental innovations on employment changes: an econometric analysisBUSINESS STRATEGY AND THE ENVIRONMENT, Issue 6 2004Klaus Rennings This paper examines the determinants of employment changes due to an environmental innovation of an establishment. The data stem from telephone surveys in five European countries. 1594 interviews have been realized with environmentally innovative establishments representing the European industry and service sector. Based on results of discrete choice models, we show that if the most important environmental innovation is a product or service innovation it has a significantly positive effect on the probability of an increase in employment compared with the probability of no noticeable change. In contrast, if the most important environmental innovation is an end-of-pipe innovation it has a significantly positive influence on employment decrease. Methodologically, we consider the multinomial logit model and several multinomial probit models. We find that the estimates of the parameters of the explanatory variables are very similar in the different approaches. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment. [source] | ||||||||||||||||