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Controlling for overdispersion in grouped conditional logit models: A computationally simple application of Dirichlet-multinomial regression

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  • Paulo Guimar�es
  • Richard C. Lindrooth

Abstract

In this article, we provide a random utility-based derivation of the Dirichlet-multinomial regression and propose it as a convenient alternative for dealing with overdispersed multinomial data. We show that this model is a natural extension of McFadden's conditional logit for grouped data and discuss its relationship with count models. Finally, we use a data set on patient choice of hospitals to illustrate an application of the Dirichlet-multinomial regression. Copyright Royal Economic Society 2007

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Bibliographic Info

Article provided by Royal Economic Society in its journal Econometrics Journal.

Volume (Year): 10 (2007)
Issue (Month): 2 (07)
Pages: 439-452

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Handle: RePEc:ect:emjrnl:v:10:y:2007:i:2:p:439-452

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Cited by:
  1. Lutz Schneider & Alexander Kubis, 2009. "Are there Gender-specific Preferences for Location Factors? A Grouped Conditional Logit-Model of Interregional Migration Flows in Germany," IWH Discussion Papers 5, Halle Institute for Economic Research.
  2. John Mullahy, 2011. "Multivariate Fractional Regression Estimation Of Econometric Share Models," Working Papers 201133, Geary Institute, University College Dublin.
  3. De Silva, Dakshina G. & McComb, Robert P., 2009. "Research universities and regional high-tech firm start-ups and exit," MPRA Paper 13022, University Library of Munich, Germany.
  4. Conte, Anna & Levati, Vittoria & Montinari, Natalia, 2014. "Experience in Public Goods Experiments," Working Papers 2014:20, Lund University, Department of Economics.
  5. Anna Conte & M. Vittoria Levati, 2011. "Use of data on planned contributions and stated beliefs in the measurement of social preferences," Jena Economic Research Papers 2011-039, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  6. Jacob A. Jordaan, 2012. "Agglomeration and the location choice of foreign direct investment: new evidence from manufacturing FDI in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(1), pages 61-97.

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