{"id":330,"date":"2011-01-02T08:59:26","date_gmt":"2011-01-02T07:59:26","guid":{"rendered":"http:\/\/people.unil.ch\/mariusbrulhart\/?p=330"},"modified":"2023-02-01T15:04:57","modified_gmt":"2023-02-01T14:04:57","slug":"on-the-equivalence-of-location-choice-models-conditional-logit-nested-logit-and-poisson","status":"publish","type":"post","link":"https:\/\/people.unil.ch\/mariusbrulhart\/2011\/01\/on-the-equivalence-of-location-choice-models-conditional-logit-nested-logit-and-poisson\/","title":{"rendered":"On the Equivalence of Location Choice Models: Conditional Logit, Nested Logit and Poisson"},"content":{"rendered":"\n<p>with Kurt Schmidheiny, <em>Journal of Urban Economics<\/em>,\u00a069(2):\u00a0214-222,\u00a02011. <a href=\"https:\/\/people.unil.ch\/mariusbrulhart\/files\/2023\/02\/clogpoissnote1103.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">See publication<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is well understood that the two most popular empirical models of location choice &#8211; conditional logit and Poisson &#8211; 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&#8217;s gain is the other regions&#8217; loss. In contrast, the Poisson model implies a positive-sum economy, in which one region&#8217;s gain is no other region&#8217;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.<\/p>\n","protected":false},"author":1001107,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-330","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-peer-reviewed"},"_links":{"self":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/users\/1001107"}],"replies":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/comments?post=330"}],"version-history":[{"count":0,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/330\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/media?parent=330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/categories?post=330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/tags?post=330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}