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on Discrete Choice Models |
| By: | Lixiong Li |
| Abstract: | This paper describes a numerical method to solve for mean product qualities which equates the real market share to the market share predicted by a discrete choice model. The method covers a general class of discrete choice model, including the pure characteristics model in Berry and Pakes(2007) and the random coefficient logit model in Berry et al.(1995) (hereafter BLP). The method transforms the original market share inversion problem to an unconstrained convex minimization problem, so that any convex programming algorithm can be used to solve the inversion. Moreover, such results also imply that the computational complexity of inverting a demand model should be no more than that of a convex programming problem. In simulation examples, I show the method outperforms the contraction mapping algorithm in BLP. I also find the method remains robust in pure characteristics models with near-zero market shares. |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1802.04444&r=dcm |
| By: | Régis BLAZY (LaRGE Research Center, Université de Strasbourg); Nirjhar NIGAM (CEREFIGE and LARGE Research Centers, ICN Business School) |
| Abstract: | Our paper investigates a comprehensive sample of 574 English corporate insolvency cases, including direct liquidation cases. In contrast to other insolvency procedures, liquidations perform poorly on average and fail to produce satisfactory repayments to creditors. We run multinomial Logit regressions to explain the choice between liquidation and reorganization. We obtain three main results. First, we confirm that size matters: distressed firms owning low assets have higher chances of being liquidated immediately. Second, the presence of secured creditors decreases the risk of direct liquidation. This provides a clue that in England, the most-informed creditors adapt their strategies and turn away from the less-performing procedures. Third, we find that the likelihood of administration—which appears nowadays as the main alternative to direct liquidation—significantly depends on the proportion of fixed/current assets owned by the firms. |
| Keywords: | liquidation, reorganization, receivership, administration, corporate insolvency, England |
| JEL: | G33 G38 K20 K22 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2018-02&r=dcm |
| By: | Riccardo Lucchetti (Di.S.E.S. - Universita' Politecnica delle Marche); Claudia Pigini (Di.S.E.S. - Universita' Politecnica delle Marche) |
| Abstract: | Estimation of random-effects dynamic probit models for panel data entails the so-called "initial conditions problem". We argue that the relative finitesample performance of the two main competing solutions is driven by the magnitude of the individual unobserved heterogeneity and/or of the state dependence in the data. We investigate our conjecture by means of a comprehensive Monte Carlo experiment and offer useful indications for the practitioner. |
| Keywords: | Dynamic panel probit; panel data; Monte Carlo study |
| JEL: | C23 C25 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:426&r=dcm |
| By: | Jingwen Wu; Bingdong Hou; Ruoyu Ke; Yun-Fei Du; Ce Wang; Xiangzheng Li; Jiawei Cai; Tianqi Chen; Meixuan Teng; Jin Liu; Jin-Wei Wang; Hua Liao |
| Abstract: | Solid fuels are still widely used in rural China though the living standard has improved greatly. Energy poverty is an obvious indicator of poverty, which has serious effect on economic development, environment and health. In this paper, we conducted a detailed analysis on fuel choice and usage behavior of different end-use activities in rural residential energy consumption. Using 717 household observations from a micro survey data in two counties of Shandong and Hebei province in 2016, we find that biomass is the dominant fuel used for cooking among all energy sources despite of obvious trend of decrease in recent years, accounting for 44%. Clean energy used to cook increased markedly with a proportion of nearly 50%. Biomass is also the ordinary fuel used for water heating excerpt for solar energy. Almost 90% households rely on coal for space heating in winter, and one-third households have space heating less than 2 months. Ownerships of home appliances for basic needs is higher than that for hedonistic needs, and usage behaviors of some appliances are economical. Fuel accessibility of commercial energy has improved noticeably in rural, and the high proportion usage of biomass is affected by family income, using habits, local resources, environmental recognition, education and age. Since solid fuels are widely used in rural, it is important to cleanse biomass, develop new energy, and improve residents¡¯ cognition about the consequences of using solid fuels. |
| Keywords: | rural households; fuel choice; end-use; usage behaviors |
| JEL: | Q54 Q40 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:109&r=dcm |