[Limdep Nlogit List] discrete choice with small proportion of ones

[Arthur Caplan]

Hi Casey,

I know that there are zero inflation models for count distributions.
You might try and find something similar for discrete choice.

Arthur Caplan 

-----Original Message-----
From: limdep-bounces at limdep.itls.usyd.edu.au
[mailto:limdep-bounces at limdep.itls.usyd.edu.au] On Behalf Of Casey
Dawkins
Sent: Friday, July 28, 2006 9:14 AM
To: limdep at limdep.itls.usyd.edu.au
Subject: [Limdep Nlogit List] discrete choice with small proportion of
ones

Hello,

I am estimating a discrete choice model with a sample
that contains a small proportion of ones (less than 5%
of the sample).  

I am looking for references on the econometric issues
associated with such samples.  I know that
count-R-square-type measures are unreliable for such
models, because the .50 cutoff is a poor naive
prediction rule.  I've also seen somewhere that the
logit model may be inefficient in such cases, but I do
not recall where this result appears.

Any suggestions would be greatly appreciated.

Thanks,
Casey






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