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dc.contributor.authorSilberhorn, Nadjaen_US
dc.contributor.authorBoztuğ, Yaseminen_US
dc.contributor.authorHildebrandt, Lutzen_US
dc.date.accessioned2006-05-29en_US
dc.date.accessioned2009-07-23T14:43:37Z-
dc.date.available2009-07-23T14:43:37Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/25100-
dc.description.abstractDue to its ability to allow and account for similarities between pairs of alternatives, the nested logit model is increasingly used in practical applications. However the fact that there are two different specifications of the nested logit model has not received adequate attention. The utility maximization nested logit (UMNL) model and the non-normalized nested logit (NNNL) model have different properties, influencing the estimation results in a different manner. As the NNNL specification is not consistent with random utility theory (RUT), the UMNL form is preferred. This article introduces distinct specifications of the nested logit model and indicates particularities arising from model estimation. Additionally, it demonstrates the performance of simulation studies with the nested logit model. In simulation studies with the nested logit model using NNNL software (e. g. PROC MDC in SAS), it must be pointed out that the simulation of the utility function's error terms needs to assume RUT-conformity. But as the NNNL specification is not consistent with RUT, the input parameters cannot be reproduced without imposing restrictions. The effects of using various software packages on the estimation results of a nested logit model are shown on the basis of a simulation study.en_US
dc.language.isoengen_US
dc.publisherSFB 649, Economic Risk Berlinen_US
dc.relation.ispartofseriesSFB 649 discussion paper 2006,017en_US
dc.subject.jelC13en_US
dc.subject.jelC51en_US
dc.subject.jelC87en_US
dc.subject.jelM31en_US
dc.subject.ddc330en_US
dc.subject.keywordnested logit modelen_US
dc.subject.keywordutility maximization nested logiten_US
dc.subject.keywordnon-normalized nested logiten_US
dc.subject.keywordsimulation studyen_US
dc.subject.stwLogit-Modellen_US
dc.subject.stwModell-Spezifikationen_US
dc.subject.stwSoftwareen_US
dc.subject.stwVergleichen_US
dc.subject.stwSimulationen_US
dc.titleEstimation with the nested logit model: specifications and software particularitiesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn512466378en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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