Andre Paul wrote:
> The random utility model underlying the multinomial logit model considers
> the case of one agent having to choose between, say J alternatives.
>
> I have a dataset which gives me the outcome of credit applications by
> firms:
> granted or refused by the bank or withdrawn by the firm.
> Is there any theoretical problem to apply a multinomial logit estimation
> to
> these data, given the fact that there are 2 agents taking decisions: the
> bank (which refuses or grants the loan) and the firm (which can withdraw
> the
> application before the decision is taken)?
It's just a stab in the dark, but would a nested logit (-nlogit-) model be
more sutiable here, where the "firm" outcome is nested within the "bank"
outcome? Just a thought.
CLIVE NICHOLAS |t: 0(044)7903 397793
Politics |e: [email protected]
Newcastle University |http://www.ncl.ac.uk/geps
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