Improvement of energy efficiency is one of the main options to reduce energy demand and to reduce greenhouse gas emissions in Ukraine. However, large-scale deployment of energy efficient technologies has been constrained by several financial, technical, information, behavioral, and institutional...

This paper considers specification tests for the multinomial logit model if alternative-specificconstants are used to absorb the impact of omitted variables in the deterministic parts of theutilities. It finds that such tests then do not have any power. This implies that such tests have nopower...

We study the space constrained assortment optimization problem under the paired combinatorial logit choice model. The goal in this problem is to choose a set of products to make available for purchase with the intention of maximizing the expected revenue from each arriving customer. Each offered...

I prove that the joint distribution of random coefficients and additive errors is identified in a mulltinomial choice model. No restrictions are imposed on the support of the random coefficients and additive errors. The proof uses large support variation in choice-specific explanatory variables...

We study fundamental links between two popular approaches to consumer choice: the multinomial logit model of individual discrete choice and the CES utility function, which describes a multiple choice of a representative consumer. We base our analysis on the rational inattention (RI) model and...

In this paper we propose a method for estimating and conducting inference on categorical effects of random variables that are characterize by more that two categories. We focus on a class of parametric asymptotically normal estimators in deriving the the properties which allows for inference on...

An emerging quantitative spatial economics literature models commuting interactions by a gravity equation that is mathematically equivalent to a multinomial logit model. This model is widely viewed as restrictive because of the independence of irrelevant alternatives (IIA) property that links...

This paper shows that Hausman-McFadden and related tests for the multinomial logit model are not informative about failure of IIA, but only about specification error in the deterministic part of the utilities attached to choice alternatives. It is shown that the multinomial logit cannot be...