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Sequential and Multinomial Logit: A Nested Model

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  • van Ophem, Hans
  • Schram, Arthur

Abstract

A nested model is presented which has both the sequential and multinomial logit model as special cases. This model provides a simple test to investigate the validity of these specifications. Some theoretical properties of the model are discussed. During the analysis a distribution function is derived, which, to the best of our knowledge, has not been used before. This distribution is shown to be a generalization of the type I extreme-value distribution. Monte Carlo experiments and empirical applications of the model are presented.

Suggested Citation

  • van Ophem, Hans & Schram, Arthur, 1997. "Sequential and Multinomial Logit: A Nested Model," Empirical Economics, Springer, vol. 22(1), pages 131-152.
    • Handle: RePEc:spr:empeco:v:22:y:1997:i:1:p:131-52
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    Cited by:

    1. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, "undated". "A sequential model for older workers’ labor transitions after a health shock," Working Papers 2005-23, FEDEA.
    2. Wong, R.C.P. & Szeto, W.Y. & Wong, S.C., 2014. "Bi-level decisions of vacant taxi drivers traveling towards taxi stands in customer-search: Modeling methodology and policy implications," Transport Policy, Elsevier, vol. 33(C), pages 73-81.
    3. Vishwasrao, Sharmila, 2007. "Royalties vs. fees: How do firms pay for foreign technology?," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 741-759, August.
    4. Manuela Gussoni, 2009. "The determinants of inter-firms R&D cooperation and partner selection. A literature overview," Discussion Papers 2009/86, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    5. Fernández-Olmos, Marta & Díez-Vial, Isabel, 2013. "Effect of firm’s resources on international diversification: An application in the Iberian Ham industry," European Management Journal, Elsevier, vol. 31(2), pages 196-208.
    6. Sergi Jiménez‐Martín & José M. Labeaga & Cristina Vilaplana Prieto, 2006. "A sequential model of older workers' labor force transitions after a health shock," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 1033-1054, September.
    7. Kaiser, Ulrich, 2002. "An empirical test of models explaining research expenditures and research cooperation: evidence for the German service sector," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 747-774, June.

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