AbstractIn this paper we provide a Random-Utility based derivation of the Dirichlet-Multinomial regression and posit 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 show how it relates with count models. Finally, we use a data set on patient choice of hospitals to illustrate an application of the Dirichlet-Multinomial regression.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0509001.
Length: 24 pages
Date of creation: 01 Sep 2005
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Note: Type of Document - pdf; pages: 24
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dirichlet-multinomial; grouped conditional logit; hospital choice; overdispersion;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-09 (All new papers)
- NEP-DCM-2005-11-09 (Discrete Choice Models)
- NEP-ECM-2005-11-09 (Econometrics)
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