On the equivalence of location choice models : conditional logit, nested logit and poisson

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 2726

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General ; State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
• Thema: firm location ; residential choice ; conditional logit ; nested logit ; Poisson count model ; Standortwahl ; Betriebliche Standortwahl ; Wohnstandort ; Logit-Modell ; Zähldatenmodell ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schmidheiny, Kurt ; Brülhart, Marius
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/30694
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ