for endogeneity. It is a two step estimation method employing a control function approach: the first step generates a … control function using a linear regression, and the second step maximizes the multinomial log likelihood function with the … multinomial logit conditional mean which depends on the control function generated in the first step. Monte Carlo simulations …

This paper proposes using a control function to correct for endogeneity in recreation demand models. The control … the control function can correct for travel cost endogeneity, although we find that the model with ASCs produces … function approach is contrasted with the method of alternative specific constants (ASCs), which has been cautiously promoted in …