Deconvoluting preferences and errors: a model for binomial panel data

Mogens Fosgerau () and Søren Feodor Nielsen

MPRA Paper from University Library of Munich, Germany

Abstract: Let U be an unobserved random variable with compact support and let e_t be unobserved i.i.d. random errors also with compact support. Observe the random variables V_t, X_t, and Y_t = 1{U +d X_t+e_t < V_t}, t <= T, where d is an unknown parameter. This type of model is relevant for many stated choice experiments. It is shown that under weak assumptions on the support of U +e_t, the distributions of U and e_t as well as the unknown parameter d can be consistently estimated using a sieved maximum likelihood estimation procedure. The model is applied to simulated data and to actual data designed for assessing the willingness-to-pay for travel time savings.

Keywords: semi-nonparametric; nonparametric; method of sieves; binomial panel; willingness-to-pay; value of time (search for similar items in EconPapers)
JEL-codes: C23 R41 D12 C14 Q51 C25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-ecm
Date: 2007-07-09
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