 Characterizing the impact of discrete indicators to correct for endogeneity in discrete choice modelsThomas E. Guerrero, Cristian Guevara, Elisabetta Cherchi and Juan de Dios Ortúzar Journal of choice modelling, 2022, vol. 42, issue C Abstract: Endogeneity is a common problem in econometric modelling that may lead to estimating inconsistent parameters. In the scientific literature, the Multiple Indicator Solutions (MIS) method is used to correct for endogeneity. This approach uses indicators that, in practice, tend to be collected as discrete using Likert scales; however, theoretically, the MIS method is derived considering continuous indicators. To close this research gap, this paper focuses on characterizing the impact of discrete indicators when correcting for endogeneity using the MIS method in the case of discrete choice models (DCM). Our findings show that (i) under some conditions, using discrete indicators instead of continuous ones seems not to be a problem, however, (ii) there is also evidence that indicates that the correction could fail under not unusual circumstances. Keywords: Endogeneity; Multiple indicator solutions method; Discrete and continuous indicators; Discrete choice models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eejocm:v:42:y:2022:i:c:s1755534521000749 DOI: 10.1016/j.jocm.2021.100342 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 |
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