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Dirichlet-Multinomial Regression

Author

Listed:
  • Paulo Guimaraes

    (Medical University of South Carolina)

  • Richard Lindrooth

    (Medical University of South Carolina)

Abstract

In this paper we provide a Random-Utility based derivation of the Dirichlet-Multinomial regression and posit it as a convenient alternative for dealing with overdispersed multinomial data. We show that this model is a natural extension of McFadden's conditional logit for grouped data and show how it relates with count models. Finally, we use a data set on patient choice of hospitals to illustrate an application of the Dirichlet-Multinomial regression.

Suggested Citation

  • Paulo Guimaraes & Richard Lindrooth, 2005. "Dirichlet-Multinomial Regression," Econometrics 0509001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpem:0509001
    Note: Type of Document - pdf; pages: 24
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/em/papers/0509/0509001.pdf
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    References listed on IDEAS

    as
    1. J. Shonkwiler & Nick Hanley, 2003. "A New Approach to Random Utility Modeling using the Dirichlet Multinomial Distribution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(3), pages 401-416, November.
    2. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    3. Heckman, James J & Willis, Robert J, 1977. "A Beta-logistic Model for the Analysis of Sequential Labor Force Participation by Married Women," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 27-58, February.
    4. Walter R. Mebane & Jasjeet S. Sekhon, 2004. "Robust Estimation and Outlier Detection for Overdispersed Multinomial Models of Count Data," American Journal of Political Science, John Wiley & Sons, vol. 48(2), pages 392-411, April.
    5. Mark V. Pauly & Mark A. Satterthwaite, 1981. "The Pricing of Primary Care Physicians' Services: A Test of the Role of Consumer Information," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 488-506, Autumn.
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    Citations

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    Cited by:

    1. Bhaskar, Venkataraman & Belot, Michèle & Van de Ven, Jeroen, 2007. "Insidious Discrimination? Disentangling the Beauty Premium on a Game Show," CEPR Discussion Papers 6276, C.E.P.R. Discussion Papers.
    2. Ana Rute Cardoso, 2008. "Demand for Higher Education Programs: The Impact of the Bologna Process," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 229-247, June.
    3. Rubiana Chamarbagwala & Martin Ranger, 2010. "A Multinomial Model of Fertility Choice and Offspring Sex Ratios in India," Journal of Development Studies, Taylor & Francis Journals, vol. 46(3), pages 417-438.

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    More about this item

    Keywords

    dirichlet-multinomial; grouped conditional logit; hospital choice; overdispersion;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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