Search results

1 – 10 of over 2000
To view the access options for this content please click here
Book part

Tong Zeng and R. Carter Hill

In this paper we use Monte Carlo sampling experiments to examine the properties of pretest estimators in the random parameters logit (RPL) model. The pretests are for the…

Abstract

In this paper we use Monte Carlo sampling experiments to examine the properties of pretest estimators in the random parameters logit (RPL) model. The pretests are for the presence of random parameters. We study the Lagrange multiplier (LM), likelihood ratio (LR), and Wald tests, using conditional logit as the restricted model. The LM test is the fastest test to implement among these three test procedures since it only uses restricted, conditional logit, estimates. However, the LM-based pretest estimator has poor risk properties. The ratio of LM-based pretest estimator root mean squared error (RMSE) to the random parameters logit model estimator RMSE diverges from one with increases in the standard deviation of the parameter distribution. The LR and Wald tests exhibit properties of consistent tests, with the power approaching one as the specification error increases, so that the pretest estimator is consistent. We explore the power of these three tests for the random parameters by calculating the empirical percentile values, size, and rejection rates of the test statistics. We find the power of LR and Wald tests decreases with increases in the mean of the coefficient distribution. The LM test has the weakest power for presence of the random coefficient in the RPL model.

Details

Maximum Simulated Likelihood Methods and Applications
Type: Book
ISBN: 978-0-85724-150-4

Abstract

Details

Handbook of Transport Modelling
Type: Book
ISBN: 978-0-08-045376-7

To view the access options for this content please click here
Book part

Jon Crockett, Gerard Andrew Whelan, Caroline Louise Sinclair and Hugh Gillies

Interest in car-sharing initiatives, as a tool for improving transport network efficiency in urban areas and on interurban links, has grown in recent years. They have…

Abstract

Interest in car-sharing initiatives, as a tool for improving transport network efficiency in urban areas and on interurban links, has grown in recent years. They have often been proposed as a more cost effective alternative to other modal shift and congestion relief initiatives, such as public transport or highway improvement schemes; however, with little implementation in practice, practitioners have only limited evidence for assessing their likely impacts.

This study reports the findings of a Stated Preference (SP) study aimed at understanding the value that car drivers put on car sharing as opposed to single occupancy trips. Following an initial pilot period, 673 responses were received from a web-based survey conducted in June 2008 amongst a representative sample of car driving commuters in Scotland.

An important methodological aspect of this study was the need to account for differences in behaviour to identify those market segments with the greatest propensity to car share. To this end, we estimated a range of choice model forms and compared the ability of each to consistently identify individual behaviours. More specifically, this included a comparison of:

Standard market segmentation approaches based on multinomial logit with attribute coefficients estimated by reported characteristics (e.g. age, income, etc.);

A two-stage mixed logit approach involving the estimation of random parameters logit models followed by an examination of individual respondent's choices to arrive at estimates of their parameters, conditional on know distributions across the population (following Revelt & Train, 1999); and

A latent-class model involving the specification of C classes of respondent, each with their own coefficients, and assigning each individual a probability that they belongs to a given class based upon their observed choices, socioeconomic characteristics and their reported attitudes.

As hypothesised, there are significant variations in tastes and preferences across market segments, particularly for household car ownership, gender, age group, interest in car pooling, current journey time and sharing with a stranger (as opposed to family member/friend). Comparing the sensitivity of demand to a change from a single occupancy to a car-sharing trip, it can be seen that the latter imposes a ‘penalty’ equivalent to 29.85 IVT minutes using the mixed logit structure and 26.68 IVT minutes for the multinomial specification. Segmenting this latter value according to the number of cars owner per household results in ‘penalties’ equivalent to 46.51 and 26.42 IVT minutes for one and two plus car owning households respectively.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

To view the access options for this content please click here
Book part

Xavier Martin, Anand Swaminathan and Laszlo Tihanyi

Strategy deals with decisions about the scope of the firm and related choices about how to compete in various businesses. As such, research in strategy entails the…

Abstract

Strategy deals with decisions about the scope of the firm and related choices about how to compete in various businesses. As such, research in strategy entails the analysis of discrete choices that may not be independent of each other. In this paper, we review the methodological implications of modeling such choices and propose conditional, nested, mixed logit, and hazard rate models as solutions to the issues that arise from non-independence among strategic choices. We describe applications with an emphasis on international strategy, an area where firms face a multiplicity of choices with respect to both location and mode of entry.

Details

Research Methodology in Strategy and Management
Type: Book
ISBN: 978-0-7623-1404-1

To view the access options for this content please click here
Article

Rong Kong, Yanling Peng, Nan Meng, Hong Fu, Li Zhou, Yuehua Zhang and Calum Greig Turvey

In this study, the authors examined demand-side credit in rural China with the aims of understanding attribute preferences and the willingness of farmers to pay for credit.

Abstract

Purpose

In this study, the authors examined demand-side credit in rural China with the aims of understanding attribute preferences and the willingness of farmers to pay for credit.

Design/methodology/approach

The authors implemented an in-the-field discrete choice experiment (DCE) using a D-optimal block (6 × 9 × 3) design applied to 420 farm households across five Chinese provinces (Shandong, Sichuan, Shaanxi, Jiangsu and Henan) in the summer and fall of 2018. The DCE included six attributes including the interest rate, term of loan, type of loan, type of repayment, type of institution and mobile banking services.

Findings

Conditional and mixed logit results indicated a downward sloping credit demand curve with variable elasticity across regions. Provincial willingness-to-pay (WTP) indicators suggested that farmers were willing to pay a premium for long-term ( 0.03–0.687%) and low collateral credit loans ( 0.79–2.93%). Also, four of five provinces indicated a preference for loan amortization rather than lump-sum payment. Interestingly, in comparison to the Agricultural Bank of China (ABC), only farmers in Shandong, Sichuan and Shaanxi indicated a preference for rural credit cooperatives (RCCs)/banks and the Postal Savings Bank of China (PSBC). Another quite surprising result was bank services, in our case, access to mobile banking did not appear to induce WTP for agricultural credit. While conditional and mixed logit regression coefficients were similar (and therefore robust), the authors found that there was substantial heterogeneity across attribute preferences on term of loan, type of loan and amortization. Preferences for type of lender and mobile banking were generally homogenous. This result alone suggested that lenders should consider offering a suite of credit products with different attributes in order to maximize the potential pool of borrowers. While there were some differences across provinces, farmers appeared to be indifferent to lenders, and it did not appear that offering banking services such as mobile banking had any bearing on credit decisions.

Research limitations/implications

This paper presents a first step in using in-the-field choice experiments to better understand rural finance in China. Although the sample size satisfies conventional levels of significance and rank conditions, the authors caution against attributing results to China as a whole. Different provinces have different institutional structures and agricultural growing conditions and economies and these effects may differentially affect WTP for credit. Although by all indications farmers were aware of credit, not all farmers, in fact a minority, actually borrowed from a financial institution. This is not unusual in China, but for these farmers, the DCE was posed as hypothetical. Likewise, the study’s design was based on a generic credit product typical of rural China, and the authors caution against making inferences about other products with different attributes and risk structures.

Social implications

This study is motivated by the rapidly changing dynamic in China's agricultural economy. With specific reference to new laws and regulations about the transfer of land use rights (LURs), China's agricultural economy is undergoing significant and rapid change which will require better understanding by policy makers, lenders and practitioners of the changing credit needs of farmers, including the new and emerging class of commercial farmers.

Originality/value

To the best of the authors’ knowledge, the authors believe that the result provided in this paper present the first use of in-the-field DCE and are the first to be reported in either the English or Chinese literature on rural credit product design.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

To view the access options for this content please click here
Article

Subhro Mitra and Steven M. Leon

– The purpose of this paper is to develop a better understanding of the factors that influence a shipper's decision to choose air cargo as a mode of shipment.

Abstract

Purpose

The purpose of this paper is to develop a better understanding of the factors that influence a shipper's decision to choose air cargo as a mode of shipment.

Design/methodology/approach

A disaggregate multinomial discrete choice model is developed using freight shipment survey data to identify critical factors influencing air cargo mode choice. Disaggregate revealed preference data is obtained from surveying 347 manufacturers, freight forwarders, and other third-party service providers.

Findings

The empirical model developed in this research shows that the rate of shipment, time of transit, cost-per-pound shipped, quantity shipped, perishability and delay rate of the mode are significant factors that influence mode choice.

Research limitations/implications

The discrete choice model developed can be improved by taking into account logistics costs not considered in this research. Perhaps more in-depth surveys of the shippers and freight forwarders are needed. Additionally, improving the mode choice model by including stated preference data and subsequently incorporating service quality latent variables would be beneficial.

Practical implications

Identifying the sensitivity of the shippers to various factors influencing mode selection enables transportation planners make better demand forecast for each mode of transportation.

Originality/value

This paper extends previous mode choice studies by analyzing mode selection between air cargo and other modes. Better forecasting is achieved by replacing the logit model with probit, heteroscedastic extreme value and mixed logit models.

Details

The International Journal of Logistics Management, vol. 25 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

To view the access options for this content please click here
Book part

Jeffrey P. Newman

Mixed logit models can represent heterogeneity across individuals, in both observed and unobserved preferences, but require computationally expensive calculations to…

Abstract

Mixed logit models can represent heterogeneity across individuals, in both observed and unobserved preferences, but require computationally expensive calculations to compute probabilities. A few methods for including error covariance heterogeneity in a closed form models have been proposed, and this paper adds to that collection, introducing a new form of a Network GEV model that sub-parameterizes the allocation values for the assignment of alternatives (and sub-nests) to nests. This change allows the incorporation of systematic (nonrandom) error covariance heterogeneity across individuals, while maintaining a closed form for the calculation of choice probabilities. Also explored is a latent class model of nested models, which can similarly express heterogeneity. The heterogeneous models are compared to a similar model with homogeneous covariance in a realistic scenario, and are shown to significantly outperform the homogeneous model, and the level of improvement is especially large in certain market segments. The results also suggest that the two heterogeneous models introduced herein may be functionally equivalent.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

To view the access options for this content please click here
Article

Athanasios Tsagkanos, Evangelos Koumanakos, Antonios Georgopoulos and Costas Siriopoulos

The main purpose of this study is to examine the possibility of prediction of Greek takeover targets that belong to the industrial sector, emphasizing the econometric…

Abstract

Purpose

The main purpose of this study is to examine the possibility of prediction of Greek takeover targets that belong to the industrial sector, emphasizing the econometric methodology and the prediction test.

Design/methodology/approach

The study uses a sample of 51 targets and 290 non‐targets exclusively from Greek industry over the period 1997‐2005. In order to achieve a better predictive accuracy the paper uses a new econometric methodology, the bootstrap mixed logit and different (more advanced) techniques of prediction test and choice of cutoff values.

Findings

The results exhibit that bootstrap mixed logit has significant and valuable predictive ability with respect to the classical conditional logit model. Furthermore, the predictive accuracy is higher than the results of other studies (e.g Palepu and Espahbodi and Espahbodi).

Originality/value

The main contribution of this study is the application of the bootstrap mixed logit in analyzing Greek takeovers. The results change the prediction variables as well as the determinants of the takeover target characteristics for the Greek industry. This is meaningful, not only for the investors that seek to increase the value of their fortune through acquisitions, but also for the managers that can detect if their firm might be considered a takeover target.

Details

Review of Accounting and Finance, vol. 11 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

To view the access options for this content please click here
Article

Michael J. Turner and Leonard V. Coote

This paper aims to introduce and illustrate how discrete choice experiments (DCEs) can be used by accounting researchers and present an agenda of accounting-related…

Abstract

Purpose

This paper aims to introduce and illustrate how discrete choice experiments (DCEs) can be used by accounting researchers and present an agenda of accounting-related research topics that might usefully benefit from the adoption of DCEs.

Design/methodology/approach

Each major phase involved in conducting a DCE is illustrated using a capital budgeting case study. The research agenda is based on a review of experimental research in financial accounting, management accounting and auditing.

Findings

DCEs can overcome some of the problems associated with asking decision-makers to rank or rate alternatives. Instead, they ask decision-makers to choose an alternative from a set. DCEs arguably better reflect the realities of real-world decision-making because decision-makers need to make trade-offs between all of the alternatives relevant to a decision. An important advantage that DCEs offer is their ability to calculate willingness-to-pay estimates, which can enable the valuation of non-market goods. Several streams of experimental accounting research would appear well-suited to investigation with DCEs.

Research limitations/implications

While every effort has been made to ensure that this illustration is as generic to as the many potential studies as possible, it may be that researchers seeking to utilise a DCE need to refer to additional literary sources. This study, however, should serve as a useful starting point.

Practical implications

Accounting researchers are expected to benefit from reading this article by being: made aware of the DCE method and its advantages; shown how to conduct a DCE; and provided with an agenda of accounting-related research topics that might usefully benefit from application of the DCE methodology.

Originality/value

It is the authors’ understanding that this is the first article directed to accounting academics regarding the conduct of DCEs for accounting research. It is hoped that this study can provide a useful platform for accounting academics to launch further research adopting DCEs.

To view the access options for this content please click here
Book part

Matthieu de Lapparent

This article addresses simultaneously two important features in random utility maximisation (RUM) choice modelling: choice set generation and unobserved taste…

Abstract

This article addresses simultaneously two important features in random utility maximisation (RUM) choice modelling: choice set generation and unobserved taste heterogeneity. It is proposed to develop and to compare definitions and properties of econometric specifications that are based on mixed logit (MXL) and latent class logit (LCL) RUM models in the additional presence of prior compensatory screening decision rules. The latter allow for continuous latent bounds that determine choice alternatives to be or not to be considered for decision making. It is also proposed to evaluate and to test each against the other ones in an application to home-to-work mode choice in the Paris region of France using 2002 data.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

1 – 10 of over 2000