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Conditional Logit, IIA, and Alternatives for Estimating Models of Interstate Migration

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Author Info

  • Christiadi

    ()
    (Department of Economics, West Virginia University)

  • Brian Cushing

    ()
    (Department of Economics, West Virginia University)

Abstract

Many researchers have used the conditional logit model to examine migration. One common objection to this model is that it carries the independence from irrelevant alternatives (IIA) assumption, which may be too restrictive. This study compares the conditional logit with models that partially relax (nested logit) or fully relax (mixed logit) the IIA assumption. We will begin to learn whether assuming IIA holds poses serious estimation problems for migration modeling. Given the substantial computational cost of the more complex models, a finding that a well-specified, but computationally much simpler, conditional logit model may suffice would be useful.

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File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/wpcushing2007-4.pdf
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Bibliographic Info

Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200704.

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Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:rri:wpaper:200704

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Related research

Keywords: logit; estimation; econometrics; migration;

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References

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  1. Hensher, David A, 1986. "Sequential and Full Information Maximum Likelihood Estimation of a Nested Logit Model," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 657-67, November.
  2. Paul S. Davies & Michael J. Greenwood & Haizheng Li, 2001. "A Conditional Logit Approach to U.S. State-to-State Migration," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 337-360.
  3. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring.
  4. Brian Cushing & Jacques Poot, 2003. "Crossing boundaries and borders: Regional science advances in migration modelling," Economics of Governance, Springer, vol. 83(1), pages 317-338, October.
  5. Thomas A. Knapp & Nancy E. White & David E. Clark, 2001. "A Nested Logit Approach to Household Mobility," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 1-22.
  6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
  7. Lee, Bosang, 1999. "Calling Patterns and Usage of Residential Toll Service under Self-Selecting Tariffs," Journal of Regulatory Economics, Springer, vol. 16(1), pages 45-81, July.
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Cited by:
  1. Jacky MATHONNAT & Yong HE & Martine AUDIBERT, 2013. "Multinomial and Mixed Logit Modeling in the Presence of Heterogeneity: A Two-Period Comparison of Healthcare Provider Choice in Rural China," Working Papers 201314, CERDI.
  2. Watson, Tara, 2013. "Enforcement and immigrant location choice," Working Papers 13-10, Federal Reserve Bank of Boston.

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