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Alternative Nested Logit Model Structures and the Special Case of Partial Degeneracy

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  • Gary L. Hunt

Abstract

Partially degenerate nested logit (NL) models have broad applicability in regional science. However, the literature on them is relatively sparse and confusion exists on some aspects of identification and related matters. This paper addresses a number of conceptual and econometric aspects of partially degenerate NL models. These include identification, scaling, invariance, and consistency with the utility-maximizing postulate that underlies discrete choiceanalysis. This is accomplished within the larger, encompassing framework of nondegenerate NL models of which the partially degenerate model is a special case. Copyright 2000 Blackwell Publishers inc.

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  • Gary L. Hunt, 2000. "Alternative Nested Logit Model Structures and the Special Case of Partial Degeneracy," Journal of Regional Science, Wiley Blackwell, vol. 40(1), pages 89-113.
  • Handle: RePEc:bla:jregsc:v:40:y:2000:i:1:p:89-113
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    Cited by:

    1. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK," CREA Discussion Paper Series 17-15, Center for Research in Economic Analysis, University of Luxembourg.
    2. Steven D. Pizer & Austin B. Frakt & Roger Feldman, 2008. "Predicting risk selection following major changes in medicare," Health Economics, John Wiley & Sons, Ltd., vol. 17(4), pages 453-468.
    3. Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
    4. Nils Herger, 2013. "On Discrete Location Choice Models," Working Papers 13.02, Swiss National Bank, Study Center Gerzensee.
    5. Lahr, Michael L. & Gibbs, Robert M., 2002. "Mobility of Section 8 families in Alameda County," Journal of Housing Economics, Elsevier, vol. 11(3), pages 187-213, September.
    6. William Greene, 2007. "Discrete Choice Modeling," Working Papers 07-6, New York University, Leonard N. Stern School of Business, Department of Economics.
    7. Florian Heiss, 2002. "Structural choice analysis with nested logit models," Stata Journal, StataCorp LP, vol. 2(3), pages 227-252, August.
    8. Danis, Michelle A. & Pennington-Cross, Anthony, 2008. "The delinquency of subprime mortgages," Journal of Economics and Business, Elsevier, vol. 60(1-2), pages 67-90.
    9. José L. Oviedo & Alejandro Caparrós, 2013. "Revealed preference land use models in Andalusia: integrating commercial and environmental variables," Working Papers 1303, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    10. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom," Working Papers 2017-04, CEPII research center.
    11. Rinaldo Brau & Matteo Lippi Bruni, 2008. "Eliciting the demand for long-term care coverage: a discrete choice modelling analysis," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 411-433.
    12. Baltzopoulos, Apostolos & Braunerhjelm, Pontus & Tikoudis, Ioannis, 2012. "Spin-off: Individual, Firm, Industry and Regional Determinants," Working Paper Series in Economics and Institutions of Innovation 265, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    13. Heiss, Florian, 2002. "Specification(s) of Nested Logit Models," Sonderforschungsbereich 504 Publications 02-24, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    14. Hunt, Gary L. & Mueller, Richard E., 2010. "Returns to Skill, Tax Policy, and North American Migration by Skill Level: Canada and the United States 1995 - 2001," CLSSRN working papers clsrn_admin-2010-11, Vancouver School of Economics, revised 26 Mar 2010.
    15. Herger, Nils & McCorriston, Steve, 2013. "On discrete location choice models," Economics Letters, Elsevier, vol. 120(2), pages 288-291.
    16. Kurz, Verena, 2017. "Nudging to reduce meat consumption: Immediate and persistent effects of an intervention at a university restaurant," Working Papers in Economics 712, University of Gothenburg, Department of Economics.

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