|
on Discrete Choice Models |
| By: | BOSSERT, Walter; PETERS, Hans |
| Abstract: | Single-peaked preferences have played an important role in the literature ever since they were used by Black (1948) to formulate a domain restriction that is sufficient for the exclusion of cycles according to the majority rule. In this paper, we approach single-peakedness from a choice-theoretic perspective. We show that the well-known axiom independence of irrelevant alternatives (a form of contraction consistency) and a weak continuity requirement characterize a class of single-peaked choice functions. Moreover, we examine the rationalizability and the rationalizability-representability of these choice functions. |
| Keywords: | Single-akedness, choice functions, rationalizability, reesentability |
| JEL: | D11 D71 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:mtl:montde:2006-14&r=dcm |
| By: | Paola Annoni (Dep. of Economics, Business and Statistics - University of Milan); Pieralda Ferrari (Dep. of Economics, Business and Statistics - University of Milan) |
| Abstract: | The jointly use of two latent factors methods is proposed to assess a measurement instrument for underlying phenomena. In particular the decay status of valuable Italian buildings is quantified on the basis of a wide set of observed categorical variables. At the purpose, Rasch analysis is used to properly calibrate the data, to discard non informative variables and redundant categories. As a second step, an optimal scaling technique, Nonlinear PCA, is applied to quantify variable categories and to compute a quantitative decay indicator, which could be independently used for units of future inventory. On the overall, similarities and different capabilities of the two techniques are analyzed and discussed. |
| Keywords: | Partial Credit Rasch Model, Ordinal Variables, Nonlinear PCA, damage indicator, |
| Date: | 2006–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:bep:unimip:1038&r=dcm |
| By: | SLINKO, Arkadii; KORAY, Semih |
| Abstract: | It is not uncommon that a society facing a choice problem has also to choose the choice rule itself. In such situation voters’ preferences on alternatives induce preferences over the voting rules. Such a setting immediately gives rise to a natural question concerning consistency between these two levels of choice. If a choice rule employed to resolve the society’s original choice problem does not choose itself when it is also used in choosing the choice rule, then this phenomenon can be regarded as inconsistency of this choice rule as it rejects itself according to its own rationale. Koray (2000) proved that the only neutral, unanimous universally self-selective social choice functions are the dictatorial ones. Here we in troduce to our society a constitution, which rules out inefficient social choice rules. When inefficient social choice rules become unavailable for comparison, the property of self-selectivity becomes weaker and we show that some non-trivial self-selective social choice functions do exist. Under certain assumptions on the constitution we describe all of them. |
| Keywords: | social choice function, social choice corresndence, self-selectivity, resistance to cloning |
| JEL: | D7 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:mtl:montde:2006-21&r=dcm |
| By: | Martin Salm (MEA, University of Mannheim) |
| Abstract: | This study investigates how subjective mortality expectations and heterogeneity in time and risk preferences affect the consumption and saving behavior of the elderly. Previous studies find that the large wealth disparities observed among the elderly cannot be explained by differences in preferences. In contrast, this study identifies a strong relationship between answers to survey questions about time and risk preferences and consumption and saving behaviors. This paper uses data on information about preferences and subjective mortality expectations from the Health and Retirement Study merged with detailed consumption data from two waves of the Consumption and Activities Mail Survey. The main results are: 1) consumption and saving choices vary with subjective mortality rates in a way that is consistent with the life cycle model; 2) different answers to survey questions about time and risk preferences reflect differences in actual saving and consumption behavior; and 3) there is substantial heterogeneity in estimated time discount rates and risk aversion parameters. |
| Keywords: | preferences, mortality expectations, saving decisions |
| JEL: | D81 D91 J14 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2467&r=dcm |
| By: | CHRISTIAN, Robin; CONDER, Marston; SLINKO, Arkadii |
| Abstract: | We show that every additively representable comparative probability order on n atoms is determined by at least n - 1 binary subset comparisons. We show that there are many orders of this kind, not just the lexicographic order. These results provide answers to two questions of Fishburn et al (2002). We also study the flip relation on the class of all comparative probability orders introduced by Maclagan. We generalise an important theorem of Fishburn, Peke?c and Reeds, by showing that in any minimal set of comparisons that determine a comparative probability order, all comparisons are flippable. By calculating the characteristics of the flip relation for n = 6 we discover that the regions in the corresponding hyperplane arrangement can have no more than 13 faces and that there are 20 regions with 13 faces. All the neighbours of the 20 comparative probability orders which correspond to those regions are representable. Finally we define a class of simple games with complete desirability relation for which its strong desirability relation is acyclic, and show that the flip relation carries all the information about these games. We show that for n = 6 these games are weighted majority games. |
| Keywords: | Additively reesentable linear orders, comrative obability, elicitation, subset comrisons, sime game, weighted majority game, desirability relation. |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:mtl:montde:2006-18&r=dcm |
| By: | Michel Beine (DULBEA, Free University of Brussels,University of Luxemburg and CESifo.); Oscar Bernal (DULBEA, Free University of Brussels); Jean-Yves Gnabo (University of Namur); Christelle Lecourt (University of Namur) |
| Abstract: | Intervening in the FX market implies a complex decision process for central banks. Monetary authorities have to decide whether to intervene or not, and if so, when and how. Since the successive steps of this procedure are likely to be highly interdependent, we adopt a nested logit approach to capture their relationships and to characterize the prominent features of the various steps of the intervention decision. Our findings shed some light on the determinants of central bank interventions, on the so-called secrecy puzzle and on the identification of the variables influencing the detection of foreign exchange transactions by market traders. |
| Keywords: | Central bank interventions; Exchange rates market; Secrecy puzzle; Nested logit |
| JEL: | E58 F31 G15 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:06-15rs&r=dcm |