@techreport{Schmidheiny2009equivalence,
abstract = {It is well understood that the two most popular empirical models of location choice - conditional logit and Poisson - return identical coefficient estimates when the regressors are not individual specific. We show that these two models differ starkly in terms of their implied predictions. The conditional logit model represents a zero-sum world, in which one region's gain is the other regions' loss. In contrast, the Poisson model implies a positive-sum economy, in which one region's gain is no other region's loss. We also show that all intermediate cases can be represented as a nested logit model with a single outside option. The nested logit turns out to be a linear combination of the conditional logit and Poisson models. Conditional logit and Poisson elasticities mark the polar cases and can therefore serve as boundary values in applied research.},
address = {M\"{u}nchen},
author = {Kurt Schmidheiny and Marius Br\"{u}lhart},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C25; R30; H73; 330; firm location; residential choice; conditional logit; nested logit; Poisson count model; Standortwahl; Betriebliche Standortwahl; Wohnstandort; Logit-Modell; Z\"{a}hldatenmodell; Theorie},
language = {eng},
number = {2726},
publisher = {CESifo},
title = {On the equivalence of location choice models : conditional logit, nested logit and poisson},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/30694},
year = {2009}
}
