Open AccessA Review On Some Alternative Specifications Of The Logit Model
Author(s) -
Md. Zakir Hossain
Publication year - 2011
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v7i12.2362
Subject(s) - multinomial probit , multinomial logistic regression , econometrics , probit , independence of irrelevant alternatives , ordered probit , discrete choice , independence (probability theory) , mixed logit , logit , computer science , property (philosophy) , statistical model , probit model , logistic regression , economics , mathematics , mathematical economics , statistics , artificial intelligence , machine learning , philosophy , epistemology , social choice theory
The logit model, perhaps the simplest and the best possible probabilistic choice model in the discrete choice modeling literature. As a matter of fact, it has been extensively used in many statistical and economic applications. Unfortunately, a very unattractive property of this model in its multinomial situation is independence of irrelevant alternative (IIA) property. Due to such limitation, a number of alternative possible specifications have been proposed in the literature. This paper investigates some of the important alternative specifications of the logit model along with their merits, demerits, estimation techniques, testing procedures and attempts to advocate about the superiority of the existing specifications for the users. Interestingly, we found no such absolutely superior model to be used as an alternative to the logit model. However, generalized extreme value (GEV) model and multinomial probit model have been found to be very promising and much better than other models.