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Conditional Logit, IIA, and Alternatives for Estimating Models of Interstate Migration

Author

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  • Christiadi

    (Department of Economics, West Virginia University)

  • Brian Cushing

    (Department of Economics, West Virginia University)

Abstract

Many researchers have used the conditional logit model to examine migration. One common objection to this model is that it carries the independence from irrelevant alternatives (IIA) assumption, which may be too restrictive. This study compares the conditional logit with models that partially relax (nested logit) or fully relax (mixed logit) the IIA assumption. We will begin to learn whether assuming IIA holds poses serious estimation problems for migration modeling. Given the substantial computational cost of the more complex models, a finding that a well-specified, but computationally much simpler, conditional logit model may suffice would be useful.

Suggested Citation

  • 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.
    • Handle: RePEc:rri:wpaper:2007wp04
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    More about this item

    Keywords

    logit; estimation; econometrics; migration;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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