Empirical studies on the relationship between income and happiness commonly use standard ordered response models, the most well-known representatives being the ordered logit and the ordered probit. However, these models restrict the marginal probability effects by design, and therefore limit the analysis of distributional aspects of a change in income, that is, the study of whether the income e...

We introduce a model for categorical panel data which is tailored to the dynamic evaluation of the impact of job training programs. The model may be seen as an extension of the dynamic logit model and, as such, it allows us to disentangle true from spurious state dependence. The unobserved heterogeneity between subjects is taken into account by formulating the conditional distribution of the re...

Mycotoxins contamination in food is a serious source of health risks. This paper evaluates the Italian consumers’ perception of the mycotoxins’ risk through their willingness to pay (WTP) for a hypothetical bottle of milk obtained by cows fed with, inter alia, maize certified for the “good practices” (GPs) that reduce this risk. Therefore, a web-based stated choice experiment (SCE) has been car...

This paper uses an endogenous segmentation approach to model mode choice. This approach jointly determines the number of market segments in the travel population, assigns individuals probabilistically to each segment, and develops a distinct mode choice model for each segment group. The author proposes a stable and effective hybrid estimation approach for the endogenous segmentation model that ...

Elimination by aspects (EBA) is a random utility model that is considered to represent the choice process used by consumers more faithfully than logit and probit models. One limitation of the model is that it does not have a known error theory. We show that EBA can be derived by assuming that aspects have random utilities with independent, extreme value distributions. Multinomial logit and rank...

Fixed effects estimators of nonlinear panel models can be severely biased due to the incidental parameters problem. In this paper I find that the most important component of this incidental parameters bias for probit fixed effects estimators of index coefficients is proportional to the true value of these coefficients, using a large-T expansion of the bias. This result allows me to derive a low...

Considering the fundamental role played by small and medium sized enterprises (SMEs) in the economy of many countries and the considerable attention placed on SMEs in the new Basel Capital Accord, we develop a distress prediction model specifically for the SME sector and to analyze its effectiveness compared to a generic corporate model. The behaviour of financial measures for SMEs is analyzed ...

In this paper we investigate the behaviour of credit default in start-up companies. Using a logit regression technique on a panel data of 1430 start-ups and considering a tracking period of three years, we tested the impact on the probability of occurrence of the first credit event in financing agreements due to variables grouped into three categories: financial capital, human capital and indus...

A multinomial fractional logit model is developed in this article to examine the effects of various market variables, commodity and conservation program payments and county physical attributes on crop acreage allocation and CRP enrollment simultaneously in the Midwest region of the United States. Nine states and eleven years county level panel data are employed to estimate the acreage allocatio...

This paper investigates whether and how regional social contexts influence fertility decisions of women living in western Germany during the 1980s and 1990s. It is argued that regional opportunity structures as well as local patterns of social interaction and culture may translate into parameters that directly affect individual behaviour. Data from the German Socio-Economic Panel (GSOEP) are li...