Testing for Independence of Irrelevant Alternatives: Some Empirical Results

We estimate a multinomial Logit (MNL) model of U.K. Magistrates' Courts sentencing using a data set collected by the National Association for the Care and Resettlement of Offenders (NACRO) and test the independence of irrelevant alternatives (IIA) property using six tests. Conducting the tests with the appropriate asymptotic critical values we find that the acceptance or rejection of IIA depends both upon which test and which variant of a given test is used. The same tests are then performed using empirical critical values obtained by simulation and the resultant inferences compared. Our results show that empirical workers should exercise care when testing for IIA.


Issue Date:
Apr 01 1994
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/267431
Language:
English
Total Pages:
21
JEL Codes:
C25
Series Statement:
Working Paper No. 2/94




 Record created 2018-01-30, last modified 2018-01-31

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)