Article ID: | iaor20061047 |
Country: | United States |
Volume: | 39 |
Issue: | 2 |
Start Page Number: | 160 |
End Page Number: | 181 |
Publication Date: | May 2005 |
Journal: | Transportation Science |
Authors: | Mahmassani Hani S., Srinivasan Karthik K. |
Keywords: | behaviour, decision |
This paper focuses on the application of the kernel logit formulation to model dynamic discrete choice data. A dynamic kernel logit (DKL) formulation with normal errors is presented to model unordered discrete choice panel data. Investigating the theoretical foundations of the kernel logit model, it is demonstrated that the mixed logit error structure converges in distribution asymptotically to a suitable multivariate normal error structure. This result provides support for both cross-sectional kernel logit (CKL) and DKL models with normal errors. The calibration, identification, and specification issues associated with the latter model are also discussed. The performance of the proposed DKL model is assessed from the perspective of computational efficiency and estimate accuracy relative to the multinomial probit (MNP) model using a series of numerical experiments. Complexity analysis reveals that the DKL has a lower computational complexity than the MNP frequency simulator, which has an exponential complexity. Thus, for choice situations with a large number of alternatives (