Specification testing of discrete choice models: A note on the use of a nonparametric test

TY - JOUR

T1 - Specification testing of discrete choice models

T2 - A note on the use of a nonparametric test

AU - Fosgerau, Mogens

PY - 2008/1/1

Y1 - 2008/1/1

N2 - Model misspecifcation is a serious issue since misspecifcation generally renders statistical inference invalid. However, specifcation testing of discrete choice models is rarely applied. This paper describes a nonparametric test procedure which uses a combination of smoothed residual plots and a test statistic able to detect general misspecifcation. Nonparametric methods require large datasets when the number of independent variables is more than a few. A way to circumvent this problem is indicated, increasing the usefulness of the approach also with limited datasets.

AB - Model misspecifcation is a serious issue since misspecifcation generally renders statistical inference invalid. However, specifcation testing of discrete choice models is rarely applied. This paper describes a nonparametric test procedure which uses a combination of smoothed residual plots and a test statistic able to detect general misspecifcation. Nonparametric methods require large datasets when the number of independent variables is more than a few. A way to circumvent this problem is indicated, increasing the usefulness of the approach also with limited datasets.

KW - Discrete choice

KW - Functional form

KW - Nonparametric

KW - Specifcation test

UR - http://www.scopus.com/inward/record.url?scp=77953130395&partnerID=8YFLogxK

U2 - 10.1016/S1755-5345(13)70021-6

DO - 10.1016/S1755-5345(13)70021-6

M3 - Journal article

AN - SCOPUS:77953130395

SN - 1755-5345

VL - 1

SP - 26

EP - 39

JO - Journal of Choice Modelling

JF - Journal of Choice Modelling

IS - 1

ER -