ESTIMATION OF A DISCRETE CHOICE MODEL WHEN INDIVIDUAL CHOICES ARE NOT OBSERVABLE

Lyubov Arnoldovna Kurkalova () and Sergey Rabotyagov

No 22230, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper presents an econometric technique for circumventing the lack of individual choice data in a framework of binary choice model by utilizing aggregate choice data. The probability of observing a certain number of individuals making choice A out of the total number of individuals in a group is presented as a sum of probabilities of disjoint events, in which some individuals are picked to make choice A, and others are not. These probabilities are then used to form a likelihood function. The model, which is estimated using the method of maximum likelihood, performs favorably in an application to real discrete choice data.

Keywords: Consumer/Household Economics (search for similar items in EconPapers)
Date: 2003
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Persistent link: http://EconPapers.repec.org/RePEc:ags:aaea03:22230

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