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Alternative Nested Logit Model Structures and the Special Case of Partial Degeneracy
Author(s) -
Hunt Gary L.
Publication year - 2000
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00166
Subject(s) - degenerate energy levels , degeneracy (biology) , identification (biology) , consistency (knowledge bases) , confusion , nested logit , econometrics , logit , nested set model , mathematical economics , scaling , mathematics , statistical physics , computer science , discrete mathematics , physics , data mining , psychology , bioinformatics , botany , geometry , quantum mechanics , relational database , psychoanalysis , biology
Partially degenerate nested logit (NL) models have broad applicability in regional science. However, the literature on them is relatively sparse and confusion exists on some aspects of identification and related matters. This paper addresses a number of conceptual and econometric aspects of partially degenerate NL models. These include identification, scaling, invariance, and consistency with the utility‐maximizing postulate that underlies discrete choiceanalysis. This is accomplished within the larger, encompassing framework of nondegenerate NL models of which the partially degenerate model is a special case.