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on Discrete Choice Models |
| By: | Khai Chiong; Alfred Galichon (Département d'économie); Matt Shum |
| Abstract: | Using results from convex analysis, we characterize the identification and estimation of dynamic discrete-choice models based on the random utility framework. We show that the conditional choice probabilities and the choice specific payoffs in these models are related in the sense of conjugate duality. Based on this, we propose a new two-step estimator for these models; interestingly, the first step of our estimator involves solving a linear program which is identical to the classic assignment (two-sided matching) game of Shapley and Shubik (1971). The application of convex-analytic tools to dynamic discrete choice models, and the connection with two-sided matching models, is new in the literature. |
| Keywords: | Discret choice model; Mass Transport Approach (MTA); Conjugate duality |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/7svo6civd6959qvmn4965cth1d&r=dcm |
| By: | COMBRIS Pierre; SEABRA PINTO Alexandra; GIRAUD HERAUD Eric |
| Abstract: | We study the relative willingness-to-pay (WTP) of consumers according to the diversity of supply in a market and we show how the presence of substitutes for a given product leads to question the incentive mechanisms commonly used in experimental auctions. We propose a Surplus Comparison Mechanism (SCM) in order to yield WTP estimates which better take into account the choice set available to consumers. After showing the efficiency of this mechanism we test the SCM in a laboratory experiment, reconsidering WTP for food environmental certifications (Integrated Pest Management and Organic certification). It appears that WTPs are decreasing when more alternative certifications are offered to consumers. |
| Keywords: | Experimental Auctions, Willingness to pay, Consumers’ surplus, Choice alternatives, Food certification. |
| JEL: | C91 D44 Q51 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2015-20&r=dcm |
| By: | López Pérez, Víctor |
| Abstract: | This paper explores how changes in macroeconomic uncertainty have affected the decision to participate in the European Central Bank’s Survey of Professional Forecasters. Two different approaches are employed in order to address this question. First, a time-series analysis explores if changes in measures of uncertainty over time have led to changes in aggregate response rates. And second, a discrete-choice model for panel data is estimated to test if changes in uncertainty measures have had effects on the likelihood to participate by SPF forecasters. The main result of the paper is that higher (lower) uncertainty reduces (increases) participation in the survey. This effect is statistically and economically significant. As participation and uncertainty are found to be negatively correlated, measures of uncertainty from the ECB’s SPF could be biased downwards. JEL Classification: D81, D84, E66 |
| Keywords: | European Central Bank, participation, survey of professional forecasters, uncertainty |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20151807&r=dcm |
| By: | Nawaz, Ahmad; Iqbal, Sana |
| Abstract: | Microfinance institutions of Asia work exclusively with the mission of social welfare hence play an important role in the economic and financial development of a region.Endogeneity poses a serious threat to the authenticity of corporate governance and performance studies because of the endogenous nature of many governance and performance variables. This paper addresses this issue in the context of microfinance sector in Asia by answering the question whether social performance determines the corporate governance mechanism of MFIs. Using a panel of 173 MFIs in 18 Asian countries for the period of five years, a comprehensive corporate governance index (CGI)based on of seven internal governance mechanism variables in constructed as an indicator of the overall corporate governance mechanism of MFIs. By employing GLS model, our results indicate insignificant impact of corporate governance on many social performance variables which are attributed to the endogenous nature of this relationship as the significance of results improved by studying relationship in reverse direction by employing ordered logit model. Our results indicate that social performance is an important determinant of corporate governance mechanism of MFIs even after controlling for MFI related characteristics. |
| Keywords: | Microfinance; Corporate Governance; Social performance; Endogeneity; Asia |
| JEL: | G21 G30 M14 |
| Date: | 2015–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65312&r=dcm |