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Discrete-Choice Logit Models

Author

Listed:
  • JUNSEN ZHANG

    (University of Western Ontario)

  • SAUL D. HOFFMAN

    (University of Delaware)

Abstract

Multinomial logit discrete-choice models are now being used more frequently in sociological research, but often without appropriate attention to the central role played by the independence of irrelevant alternatives (IIA) property. In this article, three tests of the IIA property are discussed and then how to apply them is illustrated, using a data set previously analyzed by Hoffman and Duncan. The IIA tests decisively reject the IIA property in the single/welfare/remarriage choice model.

Suggested Citation

  • Junsen Zhang & Saul D. Hoffman, 1993. "Discrete-Choice Logit Models," Sociological Methods & Research, , vol. 22(2), pages 193-213, November.
    • Handle: RePEc:sae:somere:v:22:y:1993:i:2:p:193-213
    DOI: 10.1177/0049124193022002002
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    References listed on IDEAS

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    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    2. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    3. Small, Kenneth A & Hsiao, Cheng, 1985. "Multinomial Logit Specification Tests," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 619-627, October.
    4. Hausman, Jerry A & Wise, David A, 1978. "A Conditional Probit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Econometrica, Econometric Society, vol. 46(2), pages 403-426, March.
    5. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September.
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    7. Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages 29-59, Supplemen.
    8. Wills, Hugh, 1987. "A note on specification tests for the multinomial logit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 263-274.
    9. Saul Hoffman & Greg Duncan, 1988. "Multinomial and conditional logit discrete-choice models in demography," Demography, Springer;Population Association of America (PAA), vol. 25(3), pages 415-427, August.
    10. Brownstone, David & Small, Kenneth A, 1989. "Efficient Estimation of Nested Logit Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(1), pages 67-74, January.
    11. Nancy Landale, 1989. "Agricultural Opportunity and Marriage: The United States at the Turn of the Century," Demography, Springer;Population Association of America (PAA), vol. 26(2), pages 203-218, May.
    12. McFadden, Daniel, 1987. "Regression-based specification tests for the multinomial logit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 63-82.
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    Cited by:

    1. Vijverberg, Wim P., 2011. "Testing for IIA with the Hausman-McFadden Test," IZA Discussion Papers 5826, Institute of Labor Economics (IZA).
    2. Foster, E. Michael & Saunders, Robert C. & Summerfelt, Wm. Thomas, 1996. "Predicting level of care in mental health services under a continuum of care," Evaluation and Program Planning, Elsevier, vol. 19(2), pages 143-153, May.
    3. Russo, Giovanni & Gorter, Cees & Schettkat, Ronald, 2001. "Searching, hiring and labour market conditions," Labour Economics, Elsevier, vol. 8(5), pages 553-571, December.
    4. Simon Cheng & J. Scott Long, 2007. "Testing for IIA in the Multinomial Logit Model," Sociological Methods & Research, , vol. 35(4), pages 583-600, May.

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