Panel data analysis of household brand choices

Panel data analysis of household brand choices The paper examines theoretical and empirical issues arising in panel data studies of household brand choices. We develop a dynamic utility maximization model with habit formation that yields a discrete choice model that is linear in a vector of observable individual and brand characteristics, the lagged choice, an unobservable permanent individual/brand-specific effect, and an unobservable time-varying error component. We estimate the model using panel data on household yogurt purchases. We compare traditional estimation procedures with the method recently proposed by Honoré and Kyriazidou. Panel data discrete choice models with lagged dependent variables, Econometrica 68 839–874. The methods’ robustness with respect to underlying assumptions is investigated in Monte Carlo simulations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Econometrics Elsevier

Panel data analysis of household brand choices

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Publisher
Elsevier
Copyright
Copyright © 2001 Elsevier Science S.A.
ISSN
0304-4076
eISSN
1872-6895
D.O.I.
10.1016/S0304-4076(01)00041-0
Publisher site
See Article on Publisher Site

Abstract

The paper examines theoretical and empirical issues arising in panel data studies of household brand choices. We develop a dynamic utility maximization model with habit formation that yields a discrete choice model that is linear in a vector of observable individual and brand characteristics, the lagged choice, an unobservable permanent individual/brand-specific effect, and an unobservable time-varying error component. We estimate the model using panel data on household yogurt purchases. We compare traditional estimation procedures with the method recently proposed by Honoré and Kyriazidou. Panel data discrete choice models with lagged dependent variables, Econometrica 68 839–874. The methods’ robustness with respect to underlying assumptions is investigated in Monte Carlo simulations.

Journal

Journal of EconometricsElsevier

Published: Jul 1, 2001

References

  • Large sample properties of generalized method of moments estimators
    Hansen, L.P.

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