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Multinomial Probit Estimation of Spatially Interdependent Choices: An Empirical Comparison of Two New Techniques


  • Bolduc, D.
  • Fortin, B.
  • Gordon, S.


The paper compares the empirical performance of two recently suggested techniques for estimating Multinomial Probit (MNP) models. The application concerns the choice of the first practice location of general practitioners in Quebec (Canada). Regional similarities are accounted for by modeling interdependent choice decisions. One technique is a simulated maximum likelihood based approach that relies on a Geweke, Hajivassiliou, and Keane (GHK) choice probability simulator, and the other one exploits the Gibbs sampler with data augmentation. The results indicate that both estimation techniques give similar results. Compared to its competitor, the Gibbs approach is much simpler to implement both conceptually and computationally.
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Suggested Citation

  • Bolduc, D. & Fortin, B. & Gordon, S., 1995. "Multinomial Probit Estimation of Spatially Interdependent Choices: An Empirical Comparison of Two New Techniques," Papers 9508, Laval - Recherche en Politique Economique.
  • Handle: RePEc:fth:lavape:9508

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    References listed on IDEAS

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    Cited by:

    1. Heijnen, P. & Samarina, A.. & Jacobs, J.P.A.M. & Elhorst, J.P., 2013. "State transfers at different moments in time," Research Report 13006-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. Jean-François Richard, 2015. "Likelihood Evaluation of High-Dimensional Spatial Latent Gaussian Models with Non-Gaussian Response Variables," Working Paper 5778, Department of Economics, University of Pittsburgh.
    3. Ricardo A. Daziano & Luis Miranda-Moreno & Shahram Heydari, 2013. "Computational Bayesian Statistics in Transportation Modeling: From Road Safety Analysis to Discrete Choice," Transport Reviews, Taylor & Francis Journals, vol. 33(5), pages 570-592, September.
    4. Wall, Melanie M. & Liu, Xuan, 2009. "Spatial latent class analysis model for spatially distributed multivariate binary data," Computational Statistics & Data Analysis, Elsevier, vol. 53(8), pages 3057-3069, June.
    5. Anping Chen & Marlon Boarnet & Mark Partridge & Raffaella Calabrese & Johan A. Elkink, 2014. "Estimators Of Binary Spatial Autoregressive Models: A Monte Carlo Study," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 664-687, September.
    6. Bala, Alain Pholo & Peeters, Dominique & Thomas, Isabelle, 2014. "Spatial issues on a hedonic estimation of rents in Brussels," Journal of Housing Economics, Elsevier, vol. 25(C), pages 104-123.
    7. Ozturk, Erdogan & Irwin, Elena G., 2001. "Explaining Household Location Choices Using A Spatial Probit Model," 2001 Annual meeting, August 5-8, Chicago, IL 20626, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Revelt, David & Train, Kenneth, 2000. "Customer-Specific Taste Parameters and Mixed Logit: Households' Choice of Electricity Supplier," Department of Economics, Working Paper Series qt1900p96t, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    9. Holmes, George M., 2005. "Increasing physician supply in medically underserved areas," Labour Economics, Elsevier, vol. 12(5), pages 697-725, October.
    10. De Pinto, Alessandro & Nelson, Gerald C., 2002. "Correcting For Spatial Effects In Limited Dependent Variable Regression: Assessing The Value Of "Ad-Hoc" Techniques," 2002 Annual meeting, July 28-31, Long Beach, CA 19782, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Liesenfeld, Roman & Richard, Jean-François & Vogler, Jan, 2013. "Analysis of discrete dependent variable models with spatial correlation," Economics Working Papers 2013-01, Christian-Albrechts-University of Kiel, Department of Economics.
    12. repec:dgr:rugsom:13006-eef is not listed on IDEAS
    13. Schmidheiny, Kurt, 2006. "Income segregation and local progressive taxation: Empirical evidence from Switzerland," Journal of Public Economics, Elsevier, vol. 90(3), pages 429-458, February.
    14. George M. Holmes, 2004. "Does the National Health Service Corps Improve Physician Supply in Underserved Locations?," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 563-581, Fall.
    15. Ben-Akiva, Moshe & McFadden, Daniel & Train, Kenneth & Börsch-Supan, Axel, 2002. "Hybrid Choice Models: Progress and Challenges," Sonderforschungsbereich 504 Publications 02-29, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    16. repec:asg:wpaper:1048 is not listed on IDEAS
    17. repec:dau:papers:123456789/11295 is not listed on IDEAS
    18. Lei, J., 2013. "Smoothed Spatial Maximum Score Estimation of Spatial Autoregressive Binary Choice Panel Models," Discussion Paper 2013-061, Tilburg University, Center for Economic Research.
    19. Ziegler, Andreas, 2001. "Simulated z-tests in multinomial probit models," ZEW Discussion Papers 01-53, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    20. Daziano, Ricardo A. & Achtnicht, Martin, 2012. "Forecasting adoption of ultra-low-emission vehicles using the GHK simulator and Bayes estimates of a multinomial probit model," ZEW Discussion Papers 12-017, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    21. Daziano, Ricardo A., 2015. "Inference on mode preferences, vehicle purchases, and the energy paradox using a Bayesian structural choice model," Transportation Research Part B: Methodological, Elsevier, vol. 76(C), pages 1-26.
    22. Griffith, Daniel A., 2007. "Spatial Structure and Spatial Interaction: 25 Years Later," The Review of Regional Studies, Southern Regional Science Association, vol. 37(1), pages 28-38.
    23. De Pinto, Alessandro & Nelson, Gerald C., 2004. "A Dynamic Model Of Land Use Change With Spatially Explicit Data," 2004 Annual meeting, August 1-4, Denver, CO 20314, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. Aßmann, Christian, 2007. "Determinants and Costs of Current Account Reversals under Heterogeneity and Serial Correlation," Economics Working Papers 2007-17, Christian-Albrechts-University of Kiel, Department of Economics.

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