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on Discrete Choice Models |
| By: | Le-Yu Chen; Sokbae 'Simon' Lee (Institute for Fiscal Studies and Seoul National University); Myung Jae Sung |
| Abstract: | This paper develops maximum score estimation of preference parameters in the binary choice model under uncertainty in which the decision rule is affected by conditional expectations. The preference parameters are estimated in two stages: we estimate conditional expectations nonparametrically in the first stage and the preference parameters in the second stage based on Manski (1975, 1985)'s maximum score estimator using the choice data and first stage estimates. The paper establishes consistency and derives the rate of convergence of the corresponding two-stage estimator, which is of independent interest for maximum score estimation with generated regressors. The paper also provides results of some Monte Carlo experiments. |
| Keywords: | discrete choice, maximum score estimation, generated regressor, preference parameters, M-estimation, cube root asymptotics |
| JEL: | C12 C13 C14 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:14/13&r=dcm |
| By: | Daniel Toro-Gonzalez; Jia Yan; R. Karina Gallardo; Jill J. McCluskey (School of Economic Sciences, Washington State University) |
| Abstract: | We analyze consumers’ demand for mint gum accounting for product heterogeneity and unobservable, to the econometrician, flavor quality. We use the control function (CF) approach in the context of a discrete choice logit model in an oligopolistic framework, where price-setting firms endogenously determine prices. We found that when using the control function approach, demand estimators are improved by reducing potential biases generated by endogeneity. We found that gum is price inelastic with respect to price and quality. Implications for the mint oil industry in the Pacific Northwest are cited. |
| Keywords: | Control Function Approach, Quality Differentiation, Unobserved Product Attributes, Demand Estimation, Gum |
| JEL: | L11 L13 L66 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:gallardo-7&r=dcm |
| By: | Bontemps, Christian |
| Abstract: | In this paper, we develop moment-based tests for parametric discrete distributions. Momentbased test techniques are attractive as they provide easy-to-implement test statistics. We propose a general transformation that makes the moments of interest insensitive to the parameter estimation uncertainty. This transformation is valid in some extended family of non differentiable moments that are of great interest in the case of discrete distributions. We compare this strategy with the one which consists in correcting for the parameter uncertainty considering the power function under local alternatives. The special example of the backtesting of VaR forecasts is treated in detail, and we provide simple moments that have good size and power properties in Monte Carlo experiments. Additional examples considered are discrete counting processes and the geometric distribution. We finally apply our method to the backtesting of VaR forecasts derived from a T-GARCH(1,1) model estimated on foreign exchange rate data. |
| Keywords: | moment-based tests; parameter uncertainty; discrete distributions; Valueat- Risk; backtesting. |
| JEL: | C12 C15 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27109&r=dcm |
| By: | R. Karina Gallardo; Aaron Olanie; Rita Ordonez; Marcia Ostrom (School of Economic Sciences, Washington State University) |
| Abstract: | One alternative for farmers’ markets to increase sales and expand the customer base is to implement wireless capability (credit and debit card, and electronic benefits transfer readers) at the markets. We estimate the value farmers’ markets managers and vendors posit on wireless machines attributes, and the values customers posit on markets’ features. The quality of the wireless machine technology and the machine provider customer service are the most important attributes for, respectively, managers and vendors. Consumers are willing to pay premium prices at farmers’ markets where this technology is available. This information is useful to policy makers and wireless machine providers to implement wireless capability at farmers markets. |
| Keywords: | farmers markets, sales, wireless capability |
| JEL: | Q13 Q18 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:gallardo-8&r=dcm |
| By: | Tomasz Czekaj (Department of Food and Resource Economics, University of Copenhagen); Arne Henningsen (Department of Food and Resource Economics, University of Copenhagen) |
| Abstract: | We discuss nonparametric regression models for panel data. A fully nonparametric panel data specification that uses the time variable and the individual identifier as additional (categorical) explanatory variables is considered to be the most suitable. We use this estimator and conventional parametric panel data estimators to analyse the production technology of Polish crop farms. The results of our nonparametric kernel regressions generally differ from the estimates of the parametric models but they only slightly depend on the choice of the kernel functions. Based on economic reasoning, we found the estimates of the fully nonparametric panel data model to be more reliable. |
| Keywords: | nonparametric kernel regression, panel data, choice of the kernel, kernels for categorical variables, production function |
| JEL: | C14 C23 D24 Q12 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2013_5&r=dcm |
| By: | Lampert, Paul; Menrad, Klaus; Schoeps, Johanna |
| Abstract: | This articles reviews the purchase behaviour of consumers for plants and the attitude towards horticultural novelties. The palm, Trachycarpus wagnerianus especially, is the main focus of this study. Based on a survey of 408 customers in Bavaria during autumn 2009, the results gave an impression of how consumers inform themselves about novelties in horticulture as well as their attitude to T. wagnerianus. Within the standardized questionnaire, a conjoint measurement was applied in order to investigate the impact of the different characteristics of the palm on consumers' choice. Drawing all factors of the conjoint measurement into consideration, the T. wagnerianus has slight advantages when compared to the common Trachycarpus fortunei. |
| Keywords: | Conjoint analysis, consumer research, palms, purchasing behaviour, Marketing, M30, Q10, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwtscp:148048&r=dcm |
| By: | Filomena Pietrovito (University of Molise); Alberto Franco Pozzolo (University of Molise, Centro Studi Luca d’Agliano, MoFiR and CASMEF); Luca Salvatici (Roma Tre University) |
| Abstract: | Trade theory traces back different patterns of internationalization to heterogeneity between firms, measured both through differences in productivity levels and size. In this paper we analyze the link-between heterogeneity within sectors and internationalization choices, namely trade and foreign di-rect investments (FDI) for a large sample of countries and industries between 1994 and 2004. The focus of our paper is on the role played by average productivity level and the distribution of firms by size in explaining differences across sectors and countries in the extensive margin of internatio-nalization (i.e., the number of foreign nations where firms from a given sector and country have ex-panded abroad). By performing an ordered probit analysis, and controlling for other factors affect-ing the patterns of internationalization, we confirm that industries with higher productivity levels and with a distribution of firms shifted toward large firms are more prone to internationalize in for-eign markets through both trade and FDI. Moreover, the relative impact of average productivity and firm size on FDI is larger than that on trade. These results are robust to different measures of prod-uctivity and the distribution of firms. |
| Keywords: | exports, FDI, mergers and acquisitions, productivity, distribution of firms, ordered probit |
| JEL: | D24 F10 F14 F20 F23 |
| Date: | 2013–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:349&r=dcm |