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The Size and Power Properties of Combining Choice Set Participation Tests for the IIA Property in the Logit Model

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Author Info
Robert D. Brooks
Tim R.L. Fry
Mark N. Harris

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Abstract

This paper conducts a Monte Carlo analysis of the size and power properties of combining choice set partition tests of the IIA property of the Logit model. On the basis of this comparison we recommend that applied researchers testing for IIA calculate all versions of the McFadden, Train and Tye (1981) test and reject IIA if any single test rejects IIA.

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Publisher Info
Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 2/95.

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Length: 28 pages
Date of creation: Feb 1995
Date of revision:
Handle: RePEc:msh:ebswps:1995-2

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Related research
Keywords: Hypothesis tests; Logit model; IIA;

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