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Department of Economics, Copenhagen Business School Working Paper Series, Department of Economics, Copenhagen Business School

No 06-2009:
Non-Linear Mixed Logit and the Characterization of Individual Heterogeneity

Steffen Andersen (), Glenn W. Harrison, Arne Risa Hole and Elisabet E. Rutström

Abstract: Experimental data exhibit considerable individual heterogeneity. We review the econometric methods employed to characterize that heterogeneity. We pay particular attention to the trade-off between collecting and allowing for observable characteristics, such as the familiar demographics, and the use of statistical methods to allow for unobserved individual heterogeneity. We demonstrate that these tools are complementary.

Keywords: econometrics; demography; (follow links to similar papers)

JEL-Codes: C01; J11; (follow links to similar papers)

54 pages, June 1, 2009

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