In this paper we develop a framework for analyzing panel data with observations on rank ordered alternatives that allows for correlated random taste shifters across time and across alternatives. As a special case we obtain a nested logit model type for rank ordered alternatives. We have applied this framework to estimate several model versions for household demand for conventional and alternative fuel automobiles in Shanghai based on rank ordered data obtained from a stated preference survey. The preferred model is then used to calculate demand probabilities and elasticities and the willingness-to-pay for alternative fuel vehicles.
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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number
480.
Find related papers by JEL classification: C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
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Daniel McFadden, 2001.
"Economic Choices,"
American Economic Review,
American Economic Association, vol. 91(3), pages 351-378, June.
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