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on Discrete Choice Models |
| By: | Sophie Dantan; Nathalie Picard (Université de Cergy-Pontoise, THEMA) |
| Abstract: | This paper investigates the determinants of residential segregation using a nested logit model to disentangle household preferences for local amenities, for dwelling type and for homeownership. The model is extended to account for unobservable borrowing constraints which might prevent some households from purchasing a dwelling. A counterfactual distribution of socio-demographic characteristics across the Paris region is then built by relaxing those constraints. The comparison of the actual and counterfactual distributions suggests that if their credit constraints were alleviated, households would tend to locate further from Paris. In particular if constraints were relaxed only on the poorest households, they would not be likely to mix with the richest households. |
| Keywords: | Homeownership, Tenure choice, Borrowing constraints, Residential segregation, Suburbanization, Urban sprawl, Location choice model, Endogenous choice sets. |
| JEL: | R21 R23 R31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2019-05&r=all |
| By: | Nicolas Jacquemet (Paris School of Economics,Université Paris1 Panthéon-Sorbonne, Centre d'Economie de la Sorbonne); Stéphane Luchini (Aix-Marseille University - Aix-Marseille School of Economics, CNRS and EHESS); Jason F. Shogren (Department of Economics - University of Wyoming); Verity Watson (University of Aberdeen - Health Economics Research Unit University (HERU)) |
| Abstract: | Using discrete choices to elicit preferences is a major tool to help guide public policy. Although Discrete Choice Experiment (DCE) remains by far the most popular mechanism used to elicit preferences, its reliability still is questionable. Using an induced value experimental design, we show that standard benchmarks achieve no more than 56% (hypothetical answers with no monetary incentives) to 60% (real monetary incentives) of payoff maximizing choices. Herein we demonstrate that having respondents sign a the truth-telling oath reduces non-payoff maximizing choices by nearly 50% relative to these benchmarks. The explicit and voluntary commitment to honesty improved decisions. Further, we show that it is the explicit commitment to honesty induced by the truth-telling oath improves choices, not just any oath mechanism, i.e., an oath to task or to duty did not improve choices |
| Keywords: | Discrete Choice Experiments; Stated Preferences; Oath; Truth-telling; External validity; Welfare |
| JEL: | C9 H4 Q5 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:19007&r=all |
| By: | Jaap H. Abbring; {\O}ystein Daljord |
| Abstract: | The recent literature often cites Fang and Wang (2015) for analyzing the identification of time preferences in dynamic discrete choice under exclusion restrictions (e.g. Yao et al., 2012; Lee, 2013; Ching et al., 2013; Norets and Tang, 2014; Dub\'e et al., 2014; Gordon and Sun, 2015; Bajari et al., 2016; Chan, 2017; Gayle et al., 2018). Indeed, Fang and Wang's Proposition 2 claims generic identification of a dynamic discrete choice model with hyperbolic discounting. However, this claim uses a definition of "generic" that does not preclude the possibility that a generically identified model is nowhere identified. To illustrate this point, we provide two simple examples of models that are generically identified in Fang and Wang's sense, but that are, respectively, everywhere and nowhere identified. We conclude that Proposition 2 is void: It has no implications for identification of the dynamic discrete choice model. We show how its proof is incorrect and incomplete and suggest alternative approaches to identification. |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1905.07048&r=all |
| By: | Katharina Saunders; Christian Hagist; Alistair McGuire; Christian Schlereth |
| Abstract: | We know that existing professions in the health care sector value work environment and job conditions to a great extent. However, we are also witnessing an expansion of new roles into the health care sector, many of which substitutie the tasks of existing professions. This may be efficient, in that it releases professionals’ time. However, there is little understanding of what motivates these new professions in entering or remaining in these newly created roles. This study tries to evaluate the preference structure of one of these new staff groups, surgical technologist, through examining the preferences of trainees, defined over a number of attributes, in this group. The DCE study covers 80% of the target population. The results show a vigorous disfavour towards any perceived nursing job characteristics such as caring activities, hierarchical work environment or shift types. The results inform policy makers and hospital manager about the importance to focus not only on the nursing profession but also to take into account the existence of a group of people who is willing to work within the health care system however, associated with strong preferences against nursing activities, especially caring. Implementing and further development of new and specialised profession through reallocating former nursing tasks- should be considered while coping with labour shortage. |
| Keywords: | UDCE, labour shortage, specialised health care profession, job preferences |
| JEL: | I18 J08 J30 C93 C90 |
| Date: | 2019–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:whu:wpaper:19-02&r=all |
| By: | Hein, Yarzar; Vijitsrikamol, Kampanat; Attavanich, Witsanu; Janekarnkij, Penporn |
| Abstract: | With the existing state of issues related to global climate change, the accuracy of farmers’ perceptions of climate is critically important if they plan to implement appropriate adaptation measures in their farming. This article evaluated if farmers perceive the trends of local climate variability accurately, and was verified by the historical meteorological data analysis. Ordered probit perception models were applied in this study to determine the factors influencing the accuracy of farmer perception. It was observed that farmers’ perceptions of the rainfall amount during the early, mid, and late monsoon periods were highly accurate, and they also accurately perceived summer temperature change, but less accuracy of perception was observed of the temperate changes of the winter and monsoon seasons. Access to weekly weather information, participation in agricultural trainings, farming experience, and education level of the farmer were the major factors determining the accuracy of perception in this study. Based on the empirical results, this study suggested policy implications for (a) the locally specified weather information distribution, and (b) integration of weather information into agricultural training programs, which are available to the farming community to enhance the government implantation of the Myanmar Climate Smart Agriculture Strategy and Myanmar Climate Change Master Plan 2018–2030. |
| Keywords: | accuracy of perception; climate trend; climate variability; Myanmar; ordered probit |
| JEL: | Q12 Q54 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93990&r=all |
| By: | Sadikoglu, Serhan (Tilburg University, School of Economics and Management) |
| Abstract: | This dissertation contains three essays in the field of econometric theory. The first essay focuses on single-index binary choice regression model. A new class of semiparametric estimators based on indirect inference is proposed to estimate the regression coefficients. It is demonstrated that the proposed estimation methodology is feasible under weak distributional assumptions and robust to misclassification of responses. The second essay examines the estimation of threshold regression models with dependent data. In particular, the integrated difference kernel estimator is used as a plug-in estimator which facilitates estimation of a wide array of parametric, semiparametric and nonparametric threshold regression models. The third essay studies the identification and estimation of non separable panel data models with index structure and correlated random effects. The parameter vectors of interest are shown to be identified up to scale and could be estimated by a generalized method of moments estimator with moment conditions based on average derivative and outer product of the difference of derivatives of the regression function. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:99d83644-f9dc-49e3-a4e1-5ca8a8d3f784&r=all |
| By: | Kenneth Gillingham (Yale University, United States); Sebastien Houde (ETH Zurich, Switzerland); Arthur A. van Benthem (University of Pennsylvania, United States) |
| Abstract: | A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of fuel-economy ratings that affected 1.6 million vehicles. Using the implied changes in willingness-to-pay, we find that consumers act myopically: consumers are indifferent between $1 in discounted fuel costs and 15-38 cents in the vehicle purchase price when discounting at 4%. This myopia persists under a wide range of assumptions. |
| Keywords: | fuel economy, vehicles, myopia, undervaluation, regulation |
| JEL: | D12 H25 L11 L62 L71 Q4 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:19-321&r=all |
| By: | Kenneth Gillingham; Sébastien Houde; Arthur van Benthem |
| Abstract: | A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of fuel-economy ratings that affected 1.6 million vehicles. Using the implied changes in willingness-to-pay, we find that consumers act myopically: consumers are indifferent between $1 in discounted fuel costs and 15-38 cents in the vehicle purchase price when discounting at 4%. This myopia persists under a wide range of assumptions. |
| JEL: | D12 L62 Q4 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25845&r=all |