Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
A simple method of incorporating income effects into logit and nested-logit models: Theory and application
KTH, Superseded Departments, Infrastructure.ORCID iD: 0000-0001-5290-6101
2003 (English)In: American Journal of Agricultural Economics, ISSN 0002-9092, E-ISSN 1467-8276, Vol. 85, no 1, 248-253 p.Article in journal (Refereed) Published
Abstract [en]

Substantive income effects are incorporated in a logit or nested-logit model by assuming that utility is a piece-wise linear spline function of residual income. Specific income data are not required, only income by category. Expected compensating variation is easily and accurately approximated by the difference between expected maximum utility in the proposed and initial state, multiplied by the inverse of the individual's initial marginal utility of money. This approximation is almost exact because although any policy can, in theory, cause an individual to jump income categories, for most policies this probability will be very small.

Place, publisher, year, edition, pages
2003. Vol. 85, no 1, 248-253 p.
Keyword [en]
compensating variation, income effects, log-sum formula, nested-logit, utility
Identifiers
URN: urn:nbn:se:kth:diva-22217ISI: 000180691000018OAI: oai:DiVA.org:kth-22217DiVA: diva2:340915
Note
QC 20100525Available from: 2010-08-10 Created: 2010-08-10 Last updated: 2017-12-12Bibliographically approved

Open Access in DiVA

No full text

Authority records BETA

Karlström, Anders

Search in DiVA

By author/editor
Karlström, Anders
By organisation
Infrastructure
In the same journal
American Journal of Agricultural Economics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 21 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf