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dc.contributor.authorLiƩgeois, Philippeen_US
dc.contributor.authorIslam, Nizamulen_US
dc.date.accessioned2010-12-15en_US
dc.date.accessioned2012-10-15T14:13:01Z-
dc.date.available2012-10-15T14:13:01Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/64891-
dc.description.abstractIn discrete choice labour supply analysis, it is often reasonably expected that utility is increasing with income. Yet, analyses based on discrete choice models sometimes mention that, when no restriction is imposed a priori in the statistical optimization program, the monotonicity condition is not fully satisfied ex post. Obviously, the standard statistical optimization program might be completed with conditions (one per individual) imposing positive marginal utilities. Unfortunately, such a high-dimensional program most often appears to be rather time-consuming in order to be solved, if not practically unsolvable. In order to overcome this drawback, some authors impose general parametric restrictions a priori (hence reducing de facto the dimension of the parameter set), which is sufficient to lead to positive marginal utilities ex post. However, those restrictions might sometimes appear to be unnecessarily too severe and then generate a suboptimal set of estimated values for the parameters of the utility function. Alternatively, we show that it may be easy to avoid unnecessary restrictions. The high-dimensional program including conditions for positive marginal utilities for all can sometimes be equivalently replaced by a onedimensional one. At the end, no observation is hopefully showing negative marginal utility anymore at optimum.en_US
dc.language.isoengen_US
dc.publisherUniv. of Essex, Institute for Social and Economic Research Colchesteren_US
dc.relation.ispartofseriesEUROMOD Working Paper EM6/10en_US
dc.subject.jelC25en_US
dc.subject.jelC61en_US
dc.subject.jelH31en_US
dc.subject.jelJ22en_US
dc.subject.ddc330en_US
dc.subject.keywordLabour supplyen_US
dc.subject.keywordDiscrete choiceen_US
dc.subject.keywordUtilityen_US
dc.subject.keywordMonotonicity conditionen_US
dc.titleDealing with negative marginal utilities in the discrete choice modelling of labour supplyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn641710038en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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