Estimation with the nested logit model: specifications and software particularities

Since the dissolution of the Rural Cooperative Medical System at the end of the commune period, illness has emerged as a leading cause of poverty in rural China. To address the poor state of health care, the Chinese government unveiled the New Cooperative Medical System in 2002. Because local governments have been given significant control over program design, fundamental characteristics of the program vary from one county to the next. These differences may influence the decision to seek health care as well as the choice of hospital conditional on that initial decision. In this paper, we use a nested logit model to analyze household survey data from 25 counties to analyze the determinants of such health-seeking behavior. We find that age, the share of household expenditures allocated to food consumption (a measure of relative income), and the presence of other sick people in the household negatively affect the decision to seek health care while disability has a positive influence. Further, conditional on seeking treatment, the reimbursement scheme in place in each county and the average daily expenditure associated with hospitalization strongly influence hospital choice.

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“…There are two general normalization methods (Hensher et al, 2005), one of which normalizes the scale parameters at the lowest level and one of which normalizes the scale parameters at the highest level. The latter is consistent with the utility theory (Silberhorn et al, 2008), so our results use this method. Estimates are performed using Stata.…”

supporting

confidence: 89%

Health-Seeking Behavior and Hospital Choice in China's New Cooperative Medical System

Brown

¹

,

Brauw

²

,

Theoharides

³

2008

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Since the dissolution of the Rural Cooperative Medical System at the end of the commune period, illness has emerged as a leading cause of poverty in rural China. To address the poor state of health care, the Chinese government unveiled the New Cooperative Medical System in 2002. Because local governments have been given significant control over program design, fundamental characteristics of the program vary from one county to the next. These differences may influence the decision to seek health care as well as the choice of hospital conditional on that initial decision. In this paper, we use a nested logit model to analyze household survey data from 25 counties to analyze the determinants of such health-seeking behavior. We find that age, the share of household expenditures allocated to food consumption (a measure of relative income), and the presence of other sick people in the household negatively affect the decision to seek health care while disability has a positive influence. Further, conditional on seeking treatment, the reimbursement scheme in place in each county and the average daily expenditure associated with hospitalization strongly influence hospital choice.

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“…The second section retrieved respondents' familiarity with six types of AFVs, followed by a detailed introduction to these alternative propulsion technologies, and a stated preferences discrete choice experiment. The data of the latter is described and explored elsewhere (see Hackbarth andMadlener, 2013, 2016 The methodological approach of such an NL with two levels is described briefly in the following, drawing directly from Silberhorn et al (2008), Cameron andTrivedi (2005), Train (2003), Hensher and Greene (2002), and Louviere et al (2000), respectively.…”

Section: Datamentioning

confidence: 99%

Combined Vehicle Type and Fuel Type Choices of Private Households: An Empirical Analysis for Germany

Hackbarth

¹

,

Madlener

²

2018

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This paper examines joint consumer purchasing decisions of vehicle type and fuel type based on a dataset from a Germany-wide survey among 1500 potential car buyers. The goal is to study the buyer segments that are considering to purchase the different types of vehicles and to identify the main determinants influencing the joint choice decision: socio-demographic and household characteristics, attitudes and preferences, as well as vehicle-related attributes. Based on a nested logit model, our results suggest that although German car buyers' are very heterogeneous regarding their preferences, several similarities are found between buyers of specific vehicle types (10 vehicle classes) and specific fuel types (gasoline, diesel, alternative fuel), e.g. smaller cars and alternative fuel vehicles (AFVs) have commonalities regarding individual's environmental awareness/behavior and fuel consumption/costs. Policy-makers, when tailoring their policies, can benefit from making use of the specific insights gained from this particularly comprehensive study, and the comparisons made with the German and international scientific literature on the topic. For instance, the similarities between buyers preferring specific fuel types and specific vehicle types can be used for tailorized measures to incentivize individuals' vehicle type shifting (e.g from larger to smaller vehicles), fuel type switching (e.g. from fossil-fuelled vehicles to AFVs), or both.

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Estimation with the nested logit model: specifications and software particularities

Cited by 23 publications

References 29 publications

Health‐seeking behavior and hospital choice in China's New Cooperative Medical System

Health‐seeking behavior and hospital choice in China's New Cooperative Medical System

Health-Seeking Behavior and Hospital Choice in China's New Cooperative Medical System

Combined Vehicle Type and Fuel Type Choices of Private Households: An Empirical Analysis for Germany

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