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Title: | On the equivalence of location choice models: conditional logit, nested logit and poisson |
Author: | Schmidheiny, Kurt Brülhart, Marius |
Keywords: | Localització industrial Empirisme Anàlisi de regressió Industrial location Empiricism Regression analysis |
Issue Date: | 2009 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB09/14] |
Abstract: | It is well understood that the two most popular empirical models of location choice-conditional logit and Poisson - return identical coefficient estimates when the regressors are not individual specific. We show that these two models differ starkly in terms of their implied predictions. The conditional logit model represents a zero-sum world, in which one region's gain is the other regions' loss. In contrast, the Poisson model implies a positive-sum economy, in which one region's gain is no other region's loss. We also show that all intermediate cases can be represented as a nested logit model with a single outside option. The nested logit turns out to be a linear combination of the conditional logit and Poisson models. Conditional logit and Poisson elasticities mark the polar cases and can therefore serve as boundary values in applied research. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2009/14 |
URI: | http://hdl.handle.net/2445/116970 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
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IEB09-14_Schmidheiny+Brulhart.pdf | 566.79 kB | Adobe PDF | View/Open |
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