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on Discrete Choice Models |
| By: | Desiere, Sam (Ghent University); Walter, Christian (Ghent University) |
| Abstract: | Shift work is a widespread but understudied phenomenon. This paper examines one specific aspect of shift work: the shift premium. To this end, we included a discrete choice experiment in an online survey targeted at night and shift workers. Respondents chose between a standard 9 am - 5 pm job paying €15 per hour and a job with shift work in which the wage randomly varied between €12 and €20. The results show that respondents demand sizeable shift premiums to prefer shift over daytime work, with higher premiums for more onerous working hours such as night shifts or rotating shifts. We observe substantial heterogeneity in the shift premium across respondents and provide suggestive evidence of labour market sorting. |
| Keywords: | shift work, shift premium, Willingness to Pay, discrete choice experiment |
| JEL: | C91 J31 J48 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16460&r=dcm |
| By: | André de Palma; Karim Kilani (Université de Cergy-Pontoise, THEMA) |
| Abstract: | This paper builds upon the work of Professor Marley, who, since the beginning of his long research career, has proposed rigorous axiomatics in the area of probabilistic choice models. Our study concentrates on models that can be applied to best and worst choice scaling experiments. We focus on those among these models that are based on strong assumptions about the underlying ranking of the alternatives with which the individual is assumed to be endowed when making the choice. Taking advantage of an inclusion-exclusion identity that we showed a few years ago, we propose a variety of best-worst choice probability models that could be implemented in software packages that are flourishing in this field. |
| Keywords: | Best-worst scaling experiments; Logit model; Random utility models; Reverse logit model |
| JEL: | C25 C35 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2023-16&r=dcm |
| By: | Hajdu, Gergely; Krusper, Balázs |
| Abstract: | Consumers are constantly exposed to new information that compels them to update their beliefs about products, thereby influencing future buying and selling decisions. This process does not simply stop with a product choice. We study how choosing a product affects learning about products in the choice set after the choice has been made. We design an experiment, where we have control over the objective ranking of the options in the choice set. Specifically, participants learn about the fundamental quality of financial investments by observing price changes in multiple rounds. Participants either choose some of the investments themselves (Choice condition) or have some of the investments assigned to them (Allocation condition). We find that learning is stickier after making a choice: participants respond less to price changes in the Choice condition than in the Allocation condition. This result holds for both own and non-owned investments and for both good news and bad news. The effect is unlikely to be driven by attention: we find no difference between the conditions in the amount of attention paid to the investments. We estimate a structural model and show that learning aligns closely with the Bayesian benchmark after exogenous product allocation, while it is too sticky after making a choice. Our model characterizes sticky learning in a tractable way that is easily portable, making it simple to analyze its consequences in other contexts. |
| Keywords: | biased beliefs; attention; sticky learning; choice effect |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:46226535&r=dcm |
| By: | Cetin, Sefane (Université catholique de Louvain); Jousten, Alain (University of Liège) |
| Abstract: | This paper investigates the retirement patterns of married couples in Belgium. To forecast retirement behavior, we use administrative Social Security data from 2003 to 2017 and a discrete choice random utility model. In particular, we concentrate on the spousal bonus of pension payments to comprehend how financial incentives resulting from the social security system's structural design affect both partners' retirement decisions. We simulate the effect of the elimination of the spousal bonus and find that a small portion of women delay their retirement whereas the rest substitute into alternative social security benefits. Our results do not only highlight the significance of cross-program spillovers between various Social Security benefits, but also the heterogeneity in preferences for retirement and asymmetry of retirement behavior between husbands and wives. |
| Keywords: | old-age labor supply, retirement incentives, spousal bonus, pension reforms |
| JEL: | D10 H55 J26 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16470&r=dcm |
| By: | Dubois, Pierre; Abi Rafeh, Rossi; Griffith, Rachel; O'Connell, Martin |
| Abstract: | We develop a dynamic equilibrium model of rm competition to study the impact of counterfactual policies, such as taxes and advertising restrictions, on pricing, advertising, consumption and welfare. We estimate the model using micro level data on the market for colas. We use consumer level exposure to television commercials to estimate the impact of advertising on product choice, model rms' dynamic competition through their choice of advertising budgets and product prices, and exploit rms' practice of delegating decisions over advertising slots to agencies to link the rich consumer-level advertising variation with rms' strategic choice variables. We show that a sugar- sweetened beverage tax leads to a reduction in advertising and that the incremental eects of implementing advertising restrictions are substantially reduced with a tax in place. |
| Keywords: | taxation, advertising, discrete choice demand, dynamic oligopoly |
| JEL: | D12 H22 I18 M37 |
| Date: | 2023–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:128618&r=dcm |
| By: | Siuda, Fabian; Zörner, Thomas |
| Abstract: | Vaccinations are very effective in reducing the risk of infection on an individual level and thereby also reduce the risk of subsequently infecting others. This vaccination spillover effect reduces health related transaction costs in economic interactions and increases both consumer and producer surplus. In this paper, we quantify the valuation for vaccination spillovers for close contact services in an experimental setting. To generate a comprehensible scenario, we exploit the substitutability of testing for the disease and vaccination spillovers for infection risk reduction. We elicit individuals' willingness to pay (WTP) for testing and randomize the vaccination status of the service provider. The spillover effect of the service provider's vaccination is equivalent to 69% of the full infection risk reduction via testing. We demonstrate that higher levels of disease specific risk aversion increase both the WTP for testing and the vaccination spillover effect in levels, resulting in a constant relative vaccination spillover effect. |
| Keywords: | vaccinations; vaccination spillover; transaction costs; infection risk; randomized experiment |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:46225208&r=dcm |
| By: | Fabian Siuda (Department of Economics, Vienna University of Economics and Business); Thomas O. Zörner (Oesterreichische Nationalbank) |
| Abstract: | Vaccinations are very effective in reducing the risk of infection on an individual level and thereby also reduce the risk of subsequently infecting others. This vaccination spillover effect reduces health related transaction costs in economic interactions and increases both consumer and producer surplus. In this paper, we quantify the valuation for vaccination spillovers for close contact services in an experimental setting. To generate a comprehensible scenario, we exploit the substitutability of testing for the disease and vaccination spillovers for infection risk reduction. We elicit individuals' willingness to pay (WTP) for testing and randomize the vaccination status of the service provider. The spillover effect of the service provider's vaccination is equivalent to 69% of the full infection risk reduction via testing. We demonstrate that higher levels of disease specific risk aversion increase both the WTP for testing and the vaccination spillover effect in levels, resulting in a constant relative vaccination spillover effect. |
| Keywords: | vaccinations, vaccination spillover, transaction costs, infection risk, randomized experiment |
| JEL: | I10 I12 D10 J20 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp347&r=dcm |
| By: | Claudia Pigini; Alessandro Pionati; Francesco Valentini |
| Abstract: | We propose a bootstrap generalized Hausman test for the correct specification of unobserved heterogeneity in both linear and nonlinear fixed-effects panel data models. We consider as null hypotheses two scenarios in which the unobserved heterogeneity is either time-invariant or specified as additive individual and time effects. We contrast the standard fixed-effects estimators with the recently developed two-way grouped fixed-effects estimator, that is consistent in the presence of time-varying heterogeneity under minimal specification and distributional assumptions for the unobserved effects. The Hausman test exploits the general formulation for the variance of the vector of contrasts and critical values are computed via parametric percentile bootstrap, so as to account for the non-centrality of the asymptotic chi-square distribution arising from the incidental parameters and approximation biases. Monte Carlo evidence shows that the test has correct size and good power properties. We provide two empirical applications to illustrate the proposed test: the first one is based on a linear model for the determinants of the wage of working women and the second analyzes the trade extensive margin. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.01950&r=dcm |
| By: | Brian A. Jacob; Michael D. Ricks |
| Abstract: | This paper presents the first evidence of how students make career technical education (CTE) course-taking decisions. Among the universe of Michigan high-schoolers we find large disparities in CTE access and participation by gender, race, and income. We decompose participation gaps between supply (access) and demand (preferences) with a simple discrete choice model. We find that student preferences for CTE content drive participation gaps by gender, inequities in access drive gaps by income, and school-level supply and demand factors combine to create the gaps by race. Policy simulations highlight the importance of accessible CTE delivery models within comprehensive high schools. |
| JEL: | I0 I20 I21 I28 J01 J08 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31756&r=dcm |
| By: | Burke, Andrew; Zhao, Jingyuan; Miller, Marshall; Fulton, Lewis |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7437p058&r=dcm |
| By: | Christiaensen, Luc; Ferré, Céline; Honorati, Maddalena; Gajderowicz, Tomasz Janusz; Wrona, Sylwia Michalina |
| Abstract: | Part of a three-region set of papers analyzing coal-related labor market challenges in Poland, this paper focuses on Wielkopolska, which is most advanced in the transition out of coal. Finding viable job transitions is of enormous importance. The findings call for a more territorial-oriented approach to brokering the coal transition, rather than a sectoral one. First, even though limited from a regional perspective (4, 000 workers), affected jobs are highly concentrated in a few already lagging and depopulating municipalities. Second, while coal-related workers are similarly skilled as other workers in Wielkopolska, non-coal related workers in the at-risk municipalities are substantially less skilled, exposing them to potential displacement effects. Finally, while ready to work and to be re-skilled, discrete choice experiments about their job attribute preferences show that all workers are averse both to commuting and relocating for work, even more so than in Silesia and Lower Silesia. Complementary social protection and employment support will be needed, and the paper suggests some policy options based on international experience. The paper concludes by illustrating how a big-data driven job-matching tool, calibrated on the Polish labor market, could be used to assist caseworkers in identifying “viable-job-transition-pathways” for affected workers as well as to help policymakers identify reskilling needs and attract investments |
| Keywords: | Just transition; Wielkopolska; skills; workers; job-matching; investment. |
| Date: | 2022–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:jbsgrp:32579993&r=dcm |
| By: | Dong, Hao; Otsu, Taisuke; Taylor, Luke |
| Abstract: | In the estimation of nonparametric additive models, conventional methods, such as backfitting and series approximation, cannot be applied when measurement error is present in a covariate. This paper proposes a two-stage estimator for such models. In the first stage, to adapt to the additive structure, we use a series approximation together with a ridge approach to deal with the ill-posedness brought by mismeasurement. We derive the uniform convergence rate of this first-stage estimator and characterize how the measurement error slows down the convergence rate for ordinary/super smooth cases. To establish the limiting distribution, we construct a second-stage estimator via one-step backfitting with a deconvolution kernel using the first-stage estimator. The asymptotic normality of the second-stage estimator is established for ordinary/super smooth measurement error cases. Finally, a Monte Carlo study and an empirical application highlight the applicability of the estimator. |
| Keywords: | backfitting; classical measurement error; nonparametric additive regression; ridge regularization; series estimation |
| JEL: | C10 |
| Date: | 2022–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116007&r=dcm |
| By: | Andrew Chesher (Institute for Fiscal Studies); Adam Rosen (Institute for Fiscal Studies); Yuanqi Zhang (University College London) |
| Date: | 2023–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:cwp20/23&r=dcm |
| By: | Kortelainen, Mika; Laine, Liisa T.; Lavaste, Konsta; Saxell, Tanja; Siciliani, Luigi |
| Abstract: | We study the allocative effects of enhancing consumer choice and non-price competition in markets with heterogeneous producers. We use comprehensive administrative data and a difference-in-differences design based on the introduction of a regional patient choice reform for planned surgeries in Finland. We find that large teaching hospitals attracted more patients and concentration increased in their markets. Waiting times decreased in hospitals exposed to the reform and more patients were treated, with little effect on clinical quality or average surgical expenditure after the reform. Our results suggest that increased choice can reallocate patients towards large producers and improve public hospital performance. |
| Keywords: | Reallocation, Heterogeneous Producers, Performance, Competition, Concentration, Patient Choice, Market Structure, Local public finance and provision of public services, I11, L11, I18, L32, L38, fi=Elinkeinopolitiikka|sv=Näringspolitik|en=Industrial and economic policy|, fi=Kunnat ja hyvinvointialueet|sv=Kommuner och välfärdsområden|en=Municipalities and wellbeing services counties|, fi=Terveyspalvelut|sv=Hälsovårdstjänster|en=Healthcare services|, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:156&r=dcm |
| By: | Lisa D. Cook |
| Date: | 2023–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:96966&r=dcm |
| By: | Phan, Tien-Thao Cong; Dang, Tri-Quan; Nguyen, Luan-Thanh |
| Abstract: | While social network sites (SNSs) has emerged as one of the most promising futuristic trends in mobile commerce (m-commerce), how customers’ trust impact on customer attitude and willingness to buy through SNSs remains largely underexplored. This study develops a theoretical model to examine the impacts of characteristics of trustees on customer’s trust, customer attitude, and willingness to buy through theory of reasoned action (TRA). A survey was conducted and 200 valid questionnaires were collected from customers using Facebook, Twitter, and Tiktok platforms in Vietnam. Firstly, this study confirms that perceived reputation, multichannel integration, and system assurance exerted a positive influence on customer trust then customer trust has an influence on customer attitude and lead to willingness to buy. Secondly, the Neural Network Model was employed to rank relatively significant predictors obtained from structural equation modeling (SEM). This study contributes to the growing literature on the use of SNS apps in trying to elevate the m-commerce business. The new methodology and findings from this study will significantly contribute to the extant literature of m-commerce setting. Therefore, for practitioners concerned with fostering trust for their business when using SNS, the findings stress the importance of trust in m-commerce an integrated approach centered on key findings of this study. |
| Keywords: | m-commerce, Willingness to buy, TRA, Artificial neural network |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:278766&r=dcm |