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on Discrete Choice Models |
| By: | Ignacio A. INOA; Nathalie PICARD; André de PALMA (Université de Cergy-Pontoise, THEMA; Université de Cergy-Pontoise, THEMA; Ecole Polytechnique, Departement d’Economie) |
| Abstract: | Residential location decision is often a household joint decision involving several decision-makers. These different decision-makers usually have diverging preferences, especially in dual-earner households, when spouses work at different locations. Since about half a century, literature on residential location has studied in great detail the influence of socio-demographic characteristics (and in particular the differences between females and males or between multiple-worker and single-worker households). However, there is no research devoted to the within-family joint decision process leading to residential location decision (and work-place decisions). In the context of Paris Area, we analyze differences between spouses’ values of commuting times and show that spouses’ disparities in commuting decisions is a key element in the intra-household decision process. The single-worker household approach leaves aside by construction important intra-household considerations that influence commuting time and accessibility to jobs. We review different models useful to study intra-household decisions in dual-earner households. To do that, we base our analysis on the framework introduced by Chiappori, de Palma, Picard, and Inoa (2013), which applies the collective approach of household behavior(Chiappori, 1988; Chiappori, 1992) to describe residential location choice of dual-earner households. This collective approach has been used in several economic fields, but not in urban and transport economics so far. Furthermore, we argue that the framework developed by Inoa, Picard, and de Palma (2013), can also be adapted to analyze the joint residential and job location decisions in a two-worker household. The analysis is based on two accessibility variables (one for each spouse) embedded in a three-level nested Logit model which is used to study the interdependence of residential and workplace locations, while accounting for variation of preferences for job types across individuals. |
| Keywords: | intra-household interaction, residential location, Paris region |
| JEL: | R21 R31 C35 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2014-05&r=dcm |
| By: | Bilgin, Cevat |
| Abstract: | Tax morale is defined as the intrinsic motivation to pay taxes, and is closely related to tax compliance. Determinants of tax morale need to be investigated for a more comprehensive understanding of tax compliance. In this paper, determinants of tax morale in Turkey and Spain are analysed on the basis of World Values Survey data. Firstly, descriptive statistics of the variables used in the models are provided. Since tax morale is an ordered categorical dependent variable, ordered probit models are estimated separately for Turkey and Spain to derive the relations between tax morale and relevant variables. Marginal effects are computed since the coefficients of the models cannot be interpreted because of the nonlinearity of the estimated models. The marginal effects related to the top level of tax morale category are presented. The independent variables are combined by demographic factors, employment categories, economic status of the respondents and social capital variables. The findings from the estimated model suggest that social capital variables and some of the demographic factors have important effects on tax morale in Turkey. Confidence variables have positive effects; if taxpayers feel confidence in political entities they are willing to pay taxes. Religion and national pride affect tax morale positively. On the other hand, the results are different for Spain; social capital variables do not have effects on tax morale. Specifically, confidence variables are found to be statistically insignificant. Age, education level and the income level have significant effects on tax morale in Spain. |
| Keywords: | Tax morale; tax evasion; ordered probit. |
| JEL: | C51 C52 H26 H30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57204&r=dcm |
| By: | Marcia M Schafgans; Joachim Stibora |
| Abstract: | We develop a general equilibrium model of multiproduct fi�rms with quality differentiated goods. Households are characterized by an heterogeneous taste for the differentiated good and their income level. The use of non-homothetic preferences and vertical product differentiation (product quality) enables us to analyze how distributional changes in income affect the number of vertically differentiated �firms, their product range and prices in the presence of strategic interaction across �rms. The implications of lowering the barriers to trade within this setting are considered as well. |
| Keywords: | Multiproduct Firms, Endogenous Product Scope, Product Quality, Income Distribution, Discrete Choice , Trade Liberalization, Oligopoly, |
| JEL: | F12 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:stieip:52&r=dcm |
| By: | John Goddard (Bangor University, UK); Phil Molyneux (Bangor University, UK); Jonathan Williams (Bangor University, UK) |
| Abstract: | This paper contributes to the bank efficiency literature through an application of recently developed random parameters models for stochastic frontier analysis. We estimate standard fixed and random effects models, and alternative specifications of random parameters models that accommodate cross-sectional parameter heterogeneity. A Monte Carlo simulations exercise is used to investigate the implications for the accuracy of the estimated inefficiency scores of estimation using either an under-parameterized, over-parameterized or correctly specified cost function. On average, the estimated mean efficiencies obtained from random parameters models tend to be higher than those obtained using fixed or random effects, because random parameters models do not confound parameter heterogeneity with inefficiency. Using a random parameters model, we analyse the evolution of the average rank cost efficiency for Latin American banks between 1985 and 2010. Cost efficiency deteriorated during the 1990s, particularly for state-owned banks, before improving during the 2000s but prior to the subprime crisis. The effects of the latter varied between countries and bank ownership types |
| Keywords: | Efficiency; stochastic frontier; random parameters models; bank ownership; Latin America |
| JEL: | C23 D24 G21 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:bng:wpaper:13011&r=dcm |
| By: | Heinz Leitgöb (University of Linz, Austria) |
| Abstract: | During the past decades, count-data models (in particular, Poisson and negative-binomial-based regression models) have gained relevance in empirical social research. While identifying and interpreting main effects is relatively straightforward for this class of models, the integration of interactions between predictors proves to be complex. As a consequence of the exponential mean function implemented in count-data models (which restricts the possible range of the conditional expected count to nonnegative values), the coefficient of the product term variable (generated by the predictors constituting the interaction) does not—in contrast to the linear model—fully represent the underlying interaction effect. Further, the interaction effect is allowed to vary between individuals and can be divided into two components: a model-inherent interaction effect and a product-term-induced interaction effect. We will derive the total interaction effect for the Poisson and negative binomial models by following a method developed by Norton and Ai (2003) for binary logit and probit models. Further, we will decompose the model-inherent and the product-term-induced interaction effect, discuss their substantive meaning, and provide delta-method standard errors for the respective effects. Finally, we will provide an approach for the estimation and graphical representation of these effects in Stata. |
| Date: | 2014–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:boc:dsug14:06&r=dcm |
| By: | Nathalie PICARD; François-Charles WOLFF (Université de Cergy-Pontoise, THEMA; lemna, Université de Nantes et ined, Paris) |
| Abstract: | While intergenerational transmission of human capital has been widely documented by economists, less is known about differences in schooling between siblings. This paper proposes a measure of educational inequality in France using a sample of 27,197 children from 11,694 families. Estimation of ordered Probit models with random effects and application of variance decomposition allow making a distinction between educational inequalities between families and educational inequalities within families, among siblings. Results show that differences in schooling between families amount to about two-thirds of the total variance. Compared to their siblings, girls and first-born children are more educated. |
| JEL: | D13 I21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2014-04&r=dcm |
| By: | Jhorland Ayala |
| Abstract: | El presente documento evalúa los determinantes del acceso a los servicios médicos en Colombia con datos de la Encuesta Nacional de Calidad de Vida del año 2012, considerando características de la oferta y la demanda de salud conjuntamente. Se encontró que el acceso a los servicios médicos se redujo en Colombia entre 1997 y 2012. Este comportamiento fue desigual al interior de las regiones: Antioquia y la región Oriental experimentaron un aumento en el indicador, mientras que las regiones Caribe, Centro, Bogotá, San Andrés, Providencia y Santa Catalina, Orinoquía y Amazonía registraron una disminución. Los resultados de los modelos probit muestran que las características de la demanda explican en mayor medida la probabilidad de acceso que las características de la oferta. Por último, se evidencian diferencias regionales significativas en el acceso para el 2012.*****Abstract: This paper evaluates the determinants of access to health care services in Colombia with data from the National Survey of Quality of Life in 2012, considering the characteristics of supply and demand of health care together. It is found that access to medical services decreased in Colombia between 1997 and 2012. This performance was uneven within regions: Antioquia and the Oriental region experienced an increase in the indicator, while the Caribe, Central, Bogotá, San Andrés, Providencia and Santa Catalina, Orinoco and Amazon regions reported a decrease. The results of the probit models show that the demand characteristics explain further the access probability that the characteristics of the supply. Finally, significant regional differences were observed in the access for 2012. |
| Keywords: | acceso a servicios médicos, modelos probit, diferencias regionales. |
| JEL: | I11 I13 I14 |
| Date: | 2014–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:col:000102:011883&r=dcm |
| By: | Epiphane Sodjinou (Institut National des Recherches Agricoles du Bénin); Arne Henningsen (Department of Food and Resource Economics, University of Copenhagen); Delphin O. Koudande (Institut National des Recherches Agricoles du Bénin); Gauthier Biaou (Faculté des Sciences Agronomiques, Université d’Abomey-Calavi, République du Bénin); Guy Apollinaire Mensah (Institut National des Recherches Agricoles du Bénin) |
| Abstract: | Village poultry, also termed "bicycle poultry," is produced in scavenging farming systems and is a chewy meat with a low fat content, and constitutes an important source of meat in many African countries. This study investigates consumers’ preferences regarding the physical traits of these birds (notably chickens, ducks and guinea fowl) in the Republic of Benin. For this purpose, we applied the hedonic price method on field data collected from retailers in four urban and five rural markets. We found that meatier drake and meatier guinea fowl with white plumage are preferred by consumers who are willing to pay a premium for these types of birds. The factors which significantly influence the price of chicken are the breed of the bird, the plumage color, the meatiness and the age of the bird. Consumers are willing to pay a price premium for meatier birds of traditional breeds with white plumage color and aged between six and twelve months. Thus, efforts to improve local breeds should stress these preferred traits. |
| Keywords: | Village poultry, consumer preferences, willingness to pay, breeding traits, the Republic of Benin |
| JEL: | D12 Q13 Q11 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2014_05&r=dcm |
| By: | Bart J. Bronnenberg; Jean-Pierre Dubé; Matthew Gentzkow; Jesse M. Shapiro |
| Abstract: | We estimate the effect of information on consumers' willingness to pay for national brands in physically homogeneous product categories. We measure consumer information using education, occupation, and a survey-based measure of product knowledge. In a detailed case study of headache remedies we find that more informed consumers are less likely to pay extra to buy national brands, with pharmacists choosing them over store brands only 9 percent of the time, compared to 26 percent of the time for the average consumer. In a similar case study of pantry staples such as salt and sugar, we show that chefs devote 12 percentage points less of their purchases to national brands than demographically similar non-chefs. We extend our analysis to cover 50 retail health categories and 241 food and drink categories and use the resulting estimates to fit a stylized model of demand and pricing. The model allows us to quantify the extent to which brand premia result from misinformation, and the way more accurate beliefs would change the division of surplus among manufacturers, retailers, and consumers. |
| JEL: | D12 D83 L66 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20295&r=dcm |