EconPapers    
Economics at your fingertips  
 

An integrated choice and latent variable model for multiple discrete continuous choice kernels: Application exploring the association between day level moods and discretionary activity engagement choices

Annesha Enam, Karthik C. Konduri, Abdul R. Pinjari and Naveen Eluru

Journal of choice modelling, 2018, vol. 26, issue C, 80-100

Abstract: In the recent years, multiple discrete continuous (MDC) models have emerged as a popular framework to simultaneously model the choice of multiple goods (that are imperfect substitutes to one another) and the associated consumption quantities. The paper presents a new integrated choice and latent variable (ICLV) model implementation called the Hybrid Multiple Discrete Continuous (HMDC) model that is capable of incorporating the influence of psychological factors (modeled as latent constructs) on MDC choice behaviors. Estimation of ICLV models (with single discrete choice kernels and MDC kernels) has been a challenge owing to the high dimensional integrals involved in the likelihood function. The typically used maximum simulated likelihood estimation (MSLE) approach becomes cumbersome when the dimensionality of integration increases. In this research, a composite marginal likelihood (CML) based estimation approach is proposed for parameter estimation of the HMDC framework. Unlike the ICLV model implementations with single discrete choice kernel, the dimension of the integral to be decomposed in the HMDC varies across observations. This necessitated the use of weights when decomposing the likelihood function using the CML approach. A simulation study was conducted using synthetic datasets to demonstrate the superiority of the weighted CML approach over its unweighted counterpart in the presence of MDC choice kernel. The applicability of the proposed model formulation and associated estimation routine was demonstrated using an empirical case study with data from the 2013 American Time Use Survey (ATUS). The empirical study identifies interesting association between day level moods and discretionary activity participation decisions.

Keywords: Latent variable; Multiple discrete continuous (MDC) choice; Composite marginal likelihood (CML); Integrated choice and latent variable (ICLV) model; Hybrid choice model (HCM) (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1755534517300325
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eejocm:v:26:y:2018:i:c:p:80-100

DOI: 10.1016/j.jocm.2017.07.003

Access Statistics for this article

Journal of choice modelling is currently edited by S. Hess and J.M. Rose

More articles in Journal of choice modelling from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-10-14
Handle: RePEc:eee:eejocm:v:26:y:2018:i:c:p:80-100