Title:
|
On the equivalence of location choice models: conditional logit, nested logit and poisson
|
Author:
|
Schmidheiny, Kurt; Brülhart, Marius
|
Notes:
|
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. |
Subject(s):
|
-Localització industrial -Empirisme -Anàlisi de regressió -Industrial location -Empiricism -Regression analysis |
Rights:
|
cc-by-nc-nd, (c) Schmidheiny et al., 2009
http://creativecommons.org/licenses/by-nc-nd/3.0/es/
|
Document type:
|
Working Paper |
Published by:
|
Institut d’Economia de Barcelona
|
Share:
|
|