Investigating Scale Heterogeneity in Latent Class Models
AbstractThis paper develops and compares two alternative approaches to accommodate scale heterogeneity (also referred to as heteroskedasticity) in latent class models. Our modelling approach compares two different representations of heteroskedasticity, respectively associating the heterogeneity in scale factor with respondent's characteristics (i.e. observed scale heterogeneity) or deriving it probabilistically (i.e. unobserved scale heterogeneity). The results reveal a number of benefits associated with this type of approach, particularly when heterosckedasticity can be linked to observed characteristics of the respondent. Our data comes from a discrete choice experiment eliciting recreational users preferences for farmland walking trails in Ireland
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Bibliographic InfoPaper provided by Socio-Economic Marine Research Unit, National University of Ireland, Galway in its series Working Papers with number 148833.
Date of creation: 2012
Date of revision:
Heterogeneity; Heteroskedasticity; Environmental Economics and Policy; Research Methods/ Statistical Methods;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-DCM-2013-05-24 (Discrete Choice Models)
- NEP-ENV-2013-05-24 (Environmental Economics)
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