This paper analyzes the risk of mortgage default and prepay for single-family, 30year fixed rate mortgages using a variety of machine learning and survival analysis methods. Predictions are made for homeowner choices to continue payment, default, or prepay using both parametric and non-parametric models. These models include Binary Logit, Multinomial Logit, K-Nearest Neighbors, K-fold Cross Val...

abstract the purpose of this study is investigating factors affect on probability of willingness to pay sugar beet farmers for taking of agricultural extension services. logit model was used for cross sectional data in 2009 between 150 sugar beet farmers that were selected by random sampling in the city of mashhad. in addition, tobit model was used to analyse factors affecting on willingness to...

The multinomial logit model (MNL) has for many years provided the fundamental platform for the analysis of discrete choice. The basic model’s several shortcomings, most notably its inherent assumption of independence from irrelevant alternatives (IIA) have motivated researchers to develop a variety of alternative formulations. The mixed logit model stands as one of the most significant of these...

This paper establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015, AER) showed that when information costs are modelled using the Shannon entropy function, the resulting choice probabilities in the rational inattention model take the multinomial logit form. By exploiting convex-analytic properties of the discrete choice model, we show ...

In a recent paper in this journal, Wojcik (2000) argues that the nested logit model “is likely to be superior” to alternative random coefficients logit specifications, like those we and many others have used in recent work (e.g. Berry, Levinsohn, and Pakes (1995), henceforth BLP). Her conclusion is based on a within sample “prediction” exercise. We would like to raise several issues about her c...

Purpose We conduct a hypothetical dictator game with social distance and time delays using conjoint analysis. Design / methodology / approach Responses from 1,347 Japanese adults are collected through an online survey, and their responses are analyzed using a random parameter logit model. Findings Social preference for the present income of a stranger equals social preference for the income of ...

We study a class of assortment optimization problems where customers choose among the offered products according to the nested logit model. There is a fixed revenue associated with each product. The objective is to find an assortment of products to offer so as to maximize the expected revenue per customer. We show that the problem is polynomially solvable when the nest dissimilarity parameters ...