Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

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
Additional contact information
Steffen Andersen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Porcelænshaven 16 A, 1, DK-2000 Frederiksberg, Denmark

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

JEL-codes: C01; J11

54 pages, June 1, 2009

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