A Review On Some Alternative Specifications Of The Logit Model

  • Hossain M
N/ACitations
Citations of this article
18Readers
Mendeley users who have this article in their library.

Abstract

The logit model, perhaps the simplest and the best possible probabilistic choice model in the discrete choice modeling literature. As a matter of fact, it has been extensively used in many statistical and economic applications. Unfortunately, a very unattractive property of this model in its multinomial situation is independence of irrelevant alternative (IIA) property. Due to such limitation, a number of alternative possible specifications have been proposed in the literature. This paper investigates some of the important alternative specifications of the logit model along with their merits, demerits, estimation techniques, testing procedures and attempts to advocate about the superiority of the existing specifications for the users. Interestingly, we found no such absolutely superior model to be used as an alternative to the logit model. However, generalized extreme value (GEV) model and multinomial probit model have been found to be very promising and much better than other models.

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Cite

CITATION STYLE

APA

Hossain, Md. Z. (2011). A Review On Some Alternative Specifications Of The Logit Model. Journal of Business & Economics Research (JBER), 7(12). https://doi.org/10.19030/jber.v7i12.2362

Readers' Seniority

Tooltip

Professor / Associate Prof. 10

71%

PhD / Post grad / Masters / Doc 4

29%

Readers' Discipline

Tooltip

Economics, Econometrics and Finance 6

50%

Business, Management and Accounting 3

25%

Agricultural and Biological Sciences 2

17%

Social Sciences 1

8%

Save time finding and organizing research with Mendeley

Sign up for free