A Nested Logit Migration Model with Selectivity

Falaris, Evangelos M.

doi:10.2307/2526735

Cited by 49 publications

(34 citation statements)

References 9 publications

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“…51, pp. 808-810) [e.g., a migration choice to move to one of several macro regions and, given that choice, a decision to move to a particular area within that region (52,53)]. The probability of a choice can be expressed as the product of the probability of a nest and the probability of a choice within that nest.…”

Section: Methodsmentioning

confidence: 99%

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Waroux

Garrett

Heilmayr

et al. 2016

Proc. Natl. Acad. Sci. U.S.A.

116

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Growing demand for agricultural commodities is causing the expansion of agricultural frontiers onto native vegetation worldwide. Agribusiness companies linking these frontiers to distant spaces of consumption through global commodity chains increasingly make zero-deforestation pledges. However, production and land conversion are often carried out by less-visible local and regional actors that are mobile and responsive to new agricultural expansion opportunities and legal constraints on land use. With more stringent deforestation regulations in some countries, we ask whether their movements are determined partly by differences in land-use policies, resulting in "deforestation havens." We analyze the determinants of investment decisions by agricultural companies in the Gran Chaco and Chiquitano, a region that has become the new deforestation "hot spot" in South America. We test whether companies seek out less-regulated forest areas for new agricultural investments. Based on interviews with 82 companies totaling 2.5 Mha of properties, we show that, in addition to proximity to current investments and the availability of cheap forestland, lower deforestation regulations attract investments by companies that tend to clear more forest, mostly cattle ranching operations, and that lower enforcement attracts all companies. Avoiding deforestation leakage requires harmonizing deforestation regulations across regions and commodities and promoting sustainable intensification in cattle ranching.pollution haven | leakage | land-use change | soy | cattle

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Section: Methodsmentioning

confidence: 99%

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Waroux

Garrett

Heilmayr

et al. 2016

Proc. Natl. Acad. Sci. U.S.A.

116

View full text Add to dashboard Cite

show abstract

“…The much higher contribution of risk compared to unobserved heterogeneity to wage variance was also encountered by other estimations concerned with level of education (Chen, 2008). Equation (27) describes a multinomial probit model for the selection of major m instead of type r in terms of earnings, risk and individual speci c taste for education:…”

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confidence: 94%

“…In the rst case, the selection correction term is usually derived from an ordered probit regression in the rst stage which, after some transformation, is then included in the outcome equation (Vella, 1998) obtaining consistent estimates of the β's. In the second case, when no ordering of choices is possible, the rst stage can be estimated via a conditional logit model or its extension the nested logit model (McFadden, 1984;Trost and Lee, 1984;Falaris, 1987).…”

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confidence: 99%

“…Therefore, standard errors shown in table 8 are obtained through bootstrapping. Table 8 lists the estimation for the coe cients and marginal e ects at mean for equation (27) by college major category. In order to make the coe cient more readily interpretable, I take logarithms for all covariates.…”

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confidence: 99%

“…Table 9 provides a further scrutiny of the correlation patterns and thus individuals' personal advantages in terms of both expected wages and wages uncertainty in selecting one of the four major categories. The terms presented here refer to the correlation across the four possible major categories of expected wages and risk used in equation (27) for the estimation of the e ect of returns and risk on choices. The three counterfactuals are imputed by matching and the risk coe cients are correlated under the hypothesis of ρ = 1.…”

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confidence: 99%

See 2 more Smart Citations

Does Risk Matter? A Semiparametric Model for Educational Choices in the Presence of Uncertainty

Mazza

2011

SSRN Journal

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Standard human capital theory suggests that individuals select into education in order to maximize their utility. If agents are risk averse, they select the educational level that minimizes future uncertainty. The possibility of self-selection complicates the identi cation of the causal contribution of education to uncertainty in future payo s. In this paper the assumption of endogenous school choices due to concerns about future risk is tested and the importance of uncertainty in shaping schooling choices is assessed. Relying on a exible semiparametric procedure allowing for self selection, bounds for the e ect of eld of study in college on uncertainty are estimated and, in a second stage, exploited for modeling schooling choices. The results of the empirical investigation do con rm that individuals self-select into education in order to minimize uncertainty and maximize returns. Only selection of Humanities type of majors is una ected by risk or expected returns.

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Family Welfare Receipt, Welfare Benefit Levels, and the Schooling and Employment Status of Male Youth

Rich

1999

Social Science Research

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A Nested Logit Migration Model with Selectivity

Cited by 49 publications

References 9 publications

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano

Does Risk Matter? A Semiparametric Model for Educational Choices in the Presence of Uncertainty

Family Welfare Receipt, Welfare Benefit Levels, and the Schooling and Employment Status of Male Youth

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