Multinomial and Mixed Logit Modeling in the Presence of Heterogeneity: A Two-Period Comparison of Healthcare Provider Choice in Rural China
This study aims at testing the theoretical issue according to which multinomial logit (MNL) would give lower performance than a mixed multinomial logit (MMNL) in the presence of heterogeneity. To do so, we construct two samples of patients surveyed within the same regions in rural China, but of an interval of 18 years, with a difference in preference heterogeneity due to income growth and population aging. With the 1989-1993 sample, both models have predicted price effects; however with the 2004-2006 sample, unlike MMNL, MNL failed to predict price effect. The explanation is that the impact of price on choice became more heterogeneous in the later than the former sample, thus heterogeneity makes a difference between MNL and MMNL. The absence of meaningful divergences of distance effects between the two models can also be explained by the evolution of heterogeneity in distance preferences over the period. The coefficients of price and distances with MMNL are higher than with MNL, indicating stronger price and distance effects in MMNL estimations. Another advantage of MMNL is the possibility to measure the extent of heterogeneity. The findings suggest caution when interpreting estimation results with MNL if heterogeneity is deemed important.
|Date of creation:||18 Jul 2013|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00846085|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bhat, Chandra R., 1998. "Accommodating variations in responsiveness to level-of-service measures in travel mode choice modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(7), pages 495-507, September.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521766555.
- Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
- Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
- Gertler, Paul & Glewwe, Paul, 1990. "The willingness to pay for education in developing countries : Evidence from rural Peru," Journal of Public Economics, Elsevier, vol. 42(3), pages 251-275, August.
- Canaviri, Jose, 2007. "A Random Parameter Logit model for modeling Health Care Provider Choice in Bolivia," MPRA Paper 3263, University Library of Munich, Germany.
- 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.
- Bijan J. Borah, 2006. "A mixed logit model of health care provider choice: analysis of NSS data for rural India," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 915-932.
- repec:rri:wpaper:200704 is not listed on IDEAS
- David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
- Gertler, Paul & Locay, Luis & Sanderson, Warren, 1987. "Are user fees regressive? : The welfare implications of health care financing proposals in Peru," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 67-88.
- Paul J. Gertler & Luis Locay & Warren C. Sanderson, 1987. "Are User Fees Regressive? The Welfare Implications of Health Care Financing Proposals in Peru," NBER Working Papers 2299, National Bureau of Economic Research, Inc.
- Patrick Royston, 2004. "Multiple imputation of missing values," Stata Journal, StataCorp LP, vol. 4(3), pages 227-241, September.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
- Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
- Therese Hindman Persson, 2002. "Welfare calculations in models of the demand for sanitation," Applied Economics, Taylor & Francis Journals, vol. 34(12), pages 1509-1518.
- Fredrik Carlsson, 2003. "The demand for intercity public transport: the case of business passengers," Applied Economics, Taylor & Francis Journals, vol. 35(1), pages 41-50.
- Carlsson, Fredrik, 1999. "The Demand for Intercity Public Transport: The Case of Business Passengers," Working Papers in Economics 12, University of Gothenburg, Department of Economics.
- Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
- Vincent van den Berg & Eric Kroes & Erik T. Verhoef, 2010. "Biases in Willingness-To-Pay Measures from Multinomial Logit Estimates due to Unobserved Heterogeneity," Tinbergen Institute Discussion Papers 10-014/3, Tinbergen Institute.
- Horowitz, Joel, 1980. "The accuracy of the multinomial logit model as an approximation to the multinomial probit model of travel demand," Transportation Research Part B: Methodological, Elsevier, vol. 14(4), pages 331-341, December.
- Harris, Katherine M. & Keane, Michael P., 1998. "A model of health plan choice:: Inferring preferences and perceptions from a combination of revealed preference and attitudinal data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 131-157, November. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00846085. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.