Discrete Choice Econometrics

The Berlin Centre for Health Economics and Research hosts a methods course on Discrete Choice Econometrics. No fee is required to participate. If you have any Questions, please do not hesitate to contact Luise Lorenz. 

Download the flyer for further details.

Dates: 25 - 27  September 

Contents:  Many empirical questions in health economics involve the use of discrete choice econometrics. For example, discrete choice models can be used to analyze the choice of which physician to visit, which health insurance plan to purchase, or patient preferences for different treatment options.

This course provides an in-depth overview of discrete choice models as used in health economics, with emphasis on:

• The theoretical link between qualitative economic choices and discrete choice econometrics
• Understanding basic models such as multinomial and conditional logit, as a bridge to more advanced models
• Working with advanced models, such as mixed logit and latent class logit
• Understanding estimation via maximum likelihood and simulated maximum likelihood
• Welfare analysis with discrete choice models.  

Materials: Supporting readings for the class will be drawn from Kenneth Train, Discrete Choice Methods with Simulation, second edition, 2009. The book can be purchased in paperback, or downloaded (for free) from Prof. Train’s website. 

Participants will hear lectures and complete hands on exercises using the software package Stata.  Prerequisites include familiarity with graduate-level econometrics and basic Stata skills. 

Lecturer: The lecture will be held by Dr. Daniel J. Phaneuf, the Henry C. Taylor Professor of Agricultural and Applied Economics at the University of Wisconsin-Madison. Phaneuf is the president of the Association of Environmental and Resource Economists (AERE). He is editor of the journal Land Economics and previously was the inaugural editor in chief of Journal of the Association of Environmental and Resource Economists (JAERE) and the managing editor of the Journal of Environmental Economics and Management. His research articles – many in the field of discrete choice modelling - have appeared in prestigious economic journals.