A new condition for pooling states in multinomial logit

Hong il Yoo (h.yoo@unsw.edu.au)
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Hong il Yoo: University of New South Wales

No 2012-48, Discussion Papers from School of Economics, The University of New South Wales

Abstract: The Cramer-Ridder test is a popular procedure for testing if some outcome states can be pooled into one state in the multinomial logit model. We show that, in the presence of binary regressors, the test is overly stringent and poolability may not be tested unambiguously.

Keywords: multinomial logit; pooling; statistical test (search for similar items in EconPapers)
JEL-codes: C35 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2012-11
New Economics Papers: this item is included in nep-ecm
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