This paper develops a general method for treating discrete data sets containing individuals that have made more than one choice under varying stimuli. The multinomial probit model is shown to possess properties that make it very attractive for this application, as with it, it is possible to develop an estimation process that uses all the information in the data, and is both relatively inexpensive and consistent with utility maximization. The method, which is a generalization of Heckman's binary model, can include taste variations and more than two alternatives.
Get full access to this article
View all access options for this article.
References
1.
ChamberlainG, 1978“On the use of panel data” working paper, Department of Economics, Harvard University, Cambridge, MA
2.
ClarkC, 1961“The greatest of a finite set of random variables”Operations Research9145–162
3.
DaganzoC F, 1979Multinomial Probit: The Theory and its Application to Demand Forecasting (Academic Press, New York)
4.
DaganzoC F, 1981“Estimation of gap acceptance parameters within and across the population from direct roadside observation”Transportation Research15B1–16
5.
DaganzoC FBouthelierFSheffiY, 1977“Multinomial probit and qualitative choice: A computationally efficient algorithm”Transportation Science11338–358
6.
DaganzoC FSchoenfeldL, 1978“CHOMP user's manual” research report UCB-ITS-RR-78-7, Institute of Transportation Studies, University of California, Berkeley, CA
7.
DaganzoC FSheffiY, 1979“Estimation of choice models from panel data”presented at the 1979 meeting of the Regional Science Association, Los Angeles, CA; available from the authors
8.
DomencichT AMcFaddenD, 1975Urban Travel Demand: A Behavioral Analysis (American Elsevier, New York)
9.
HausmanJWiseD, 1978“AFDC participation: Measured variables or unobserved characteristics, permanent or transitory” working paper, Department of Economics, MIT, Cambridge, MA
10.
HeckmannJ, 1977“Statistical models for discrete panel data developed and applied to test the hypothesis of true state dependence against the hypothesis of spurious state dependence” published 1981 in Structural Analysis of Discrete Data Eds ManskiCMcFaddenD (MIT Press, Cambridge, MA) pp 114–178
11.
HeckmanJ, 1981“The incidental parameters problem and the problem of initial conditions in estimating a discrete time-discrete-data stochastic process” in Structural Analysis of Discrete Data Eds ManskiCMcFaddenD (MIT Press, Cambridge, MA) pp 179–195
12.
JohnsonLHensherD, 1980“Application of multinomial probit to a two period panel data set”paper presented at the International Conference on Disaggregate Demand Models, Leeds, England, July 1980; available from School of Economics, MacQuarie University, North Ryde, NSW, Australia
13.
SparmannJDaganzoC F, 1982“TROMP user's manual” research report UCB-ITS-RR-82-4, Institute of Transportation Studies, University of California, Berkeley, CA, USA
