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Sequential and Full Information Maximum Likelihood Estimation of a Nested Logit Model


  • Hensher, David A


Sequential estimation of a nested logit model is in general not an empirically desirable procedure, either as an alternative to full information maximum likelihood (FIML) estimation or as a source of param eter starting values for FIML estimation. Empirical studies which use varying ch oice sets across the sampled population create ambiguity in the link between seq uential and simultaneously estimated nested logit models. FIML estimation is now a computationally feasible strategy as illustrated herein. Copyright 1986 by MIT Press.

Suggested Citation

  • 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 657-667, November.
  • Handle: RePEc:tpr:restat:v:68:y:1986:i:4:p:657-67

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    3. Ho, Chinh Q. & Mulley, Corinne & Shiftan, Yoram & Hensher, David A., 2016. "Vehicle value of travel time savings: Evidence from a group-based modelling approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 134-150.
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    7. Lahiri, Kajal & Gao, Jian, 2002. "Bayesian analysis of nested logit model by Markov chain Monte Carlo," Journal of Econometrics, Elsevier, vol. 111(1), pages 103-133, November.
    8. Madden, Gary & Simpson, Michel & Savage, Scott, 2002. "Broadband Delivered Entertainment Services: Forecasting Australian Subscription Intentions," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 422-432, December.
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    10. Marisa Elena Domino & David S. Salkever, 2003. "Price elasticity and pharmaceutical selection: the influence of managed care," Health Economics, John Wiley & Sons, Ltd., vol. 12(7), pages 565-586.
    11. Herriges, Joseph A. & Kling, Catherine L., 1996. "Testing the consistency of nested logit models with utility maximization," Economics Letters, Elsevier, vol. 50(1), pages 33-39, January.
    12. Ermagun, Alireza & Samimi, Amir, 2015. "Promoting active transportation modes in school trips," Transport Policy, Elsevier, vol. 37(C), pages 203-211.
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    14. Louis Grange & Angel Ibeas & Felipe González, 2011. "A Hierarchical Gravity Model with Spatial Correlation: Mathematical Formulation and Parameter Estimation," Networks and Spatial Economics, Springer, vol. 11(3), pages 439-463, September.
    15. Christiadi & Brian Cushing, 2007. "Conditional Logit, IIA, and Alternatives for Estimating Models of Interstate Migration," Working Papers Working Paper 2007-04, Regional Research Institute, West Virginia University.
    16. Kaoru, Yoshiaki, 1995. "Measuring marine recreation benefits of water quality improvements by the nested random utility model," Resource and Energy Economics, Elsevier, vol. 17(2), pages 119-136, August.
    17. Manrai, Ajay K., 1995. "Mathematical models of brand choice behavior," European Journal of Operational Research, Elsevier, vol. 82(1), pages 1-17, April.
    18. Choi, Ki-Hong & Moon, Choon-Geol, 1997. "Generalized extreme value model and additively separable generator function," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 129-140.
    19. Kathleen W. Johnson, 1999. "Credit constraints, consumer leasing and the automobile replacement decision," Finance and Economics Discussion Series 1999-68, Board of Governors of the Federal Reserve System (U.S.).

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