Pooling choices or categories in multinomial logit models |
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Authors: | Steven B Caudill |
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Institution: | (1) Department of Economics, Auburn University, 36849 Auburn, AL, USA |
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Abstract: | The estimation of multinomial logit models today is routine. With this increased use has also come a need for testing. A test
to determine whether choices can be combined is important. This paper presents a likelihood ratio test for combining choices
in multinomial logit models. The use of the test is demonstrated with a simple example. |
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Keywords: | JEL C35 multinomial logit statistical test pooling |
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