Conditional Logit, IIA, and Alternatives for Estimating Models of Interstate Migration

Many researchers have used the conditional logit model to examine migration. One common objection to this model is that it carries the independence from irrelevant alternatives (IIA) assumption, which may be too restrictive. This study compares the conditional logit with models that partially relax (nested logit) or fully relax (mixed logit) the IIA assumption. We will begin to learn whether assuming IIA holds poses serious estimation problems for migration modeling. Given the substantial computational cost of the more complex models, a finding that a well-specified, but computationally much simpler, conditional logit model may suffice would be useful

The Interaction between Individuals’ Destination Choice and Occupational Choice: A Simultaneous Equation Approach

This study examines the relationship between an individual’s occupation choice and destination choice. It portrays the relationship as an interaction between the supply of occupational skills by individuals and demand by different labor market regions. The analysis applies a two-equation simultaneous system: (1) a multinomial logit model of occupational choice and (2) a conditional logit model of state destination choice. The unusual merger of multinomial logit and conditional logit models in a simultaneous equation framework requires derivation of a unique variancecovariance matrix. The results indicate strong association between supply of (migration) and demand for (industry mix) an individual’s occupational skills. [JEL Classification: R23, J61, J62

An Economic Profile of the Potomac Highlands Region in West Virginia

West Virginia’s Potomac Highlands region—consisting of Grant, Hardy, Hampshire, Mineral, and Pendleton counties—experienced a significant economic disruption in 2015 when the Sugar Grove Naval Station closed its doors. The Naval Station, which was designed to monitor communications transmissions for the military and National Security Agency, made a significant contribution to the Pendleton County economy, and to the broader Potomac Highlands region. This study is part of a series of reports from West Virginia University researchers at the Bureau of Business and Economic Research, the Regional Research Institute, and the Brownfields Assistance Center that evaluate the Potomac Highlands region’s economy and provide a comprehensive set of action plans to provide direction for the region’s policy makers to enhance the area’s economic growth. In this report, we examine the economic impact of the Sugar Grove Naval Center’s closure and provide a profile of the broader economy of the Potomac Highlands region

Greater Wheeling Regional Plan: Economic Profile

The Greater Wheeling region, defined in this report as consisting of Brooke, Hancock, Marshall and Ohio counties in West Virginia, and Belmont, Jefferson, and Monroe counties in Ohio, has experienced a volatile economy over the past decade with significant swings in employment across multiple sectors. In this report, we make a detailed examination of the recent economic indicators in the Greater Wheeling region. This report is part of a series from West Virginia University researchers at the Bureau of Business and Economic Research and the WVU Extension Service that evaluate the Wheeling Metropolitan Area’ economy with the goal of providing a set of comprehensive action plans to provide direction for the region’s policy makers to enhance the area’s economic growth

An Overview of the Coal Economy in Appalachia

This report notes that coal production in the Appalachian Region fell nearly 45 percent between 2005 and 2015, more than double the rate of the national decline during the same period. It outlines how regional coal production losses intersect with regional data on employment and unemployment, population and labor force, income and poverty, and education and health in Appalachia’s subregions

Conditional logit, IIA and alternatives for estimating modelsof interstate migration

Abstract: Many researchers have used the conditional logit model to examine migration. One common objection to this model is that it carries the independence from irrelevant alternatives (IIA) assumption, which may be too restrictive. This study compares the conditional logit with models that partially relax (nested logit) or fully relax (mixed logit) the IIA assumption. We will begin to learn whether assuming IIA holds poses serious estimation problems for migration modeling. Given the substantial computational cost of the more complex models, a finding that a well-specified, but computationally much simpler, conditional logit model may suffice would be useful.

West Virginia Economic Outlook 2019-2023

West Virginia’s economy enjoyed its strongest year of growth in nearly a decade during 2017, emerging from several years of severe economic weakness. Most of the bounce back in the state’s economy is connected to the energy sector, not only from the increased production of coal and natural gas but also as a result of a massive build-out of new natural gas pipeline infrastructure throughout the state. Growth has broadened to include more of the state’s regions over the past year or so, but the overall magnitude of gains in jobs and output have remained concentrated in just a few areas as some portions of West Virginia continue to struggle with a range of weak economic fundamentals. Overall, this report provides a broad and detailed foundation to help you understand the long-run economic challenges and opportunities facing West Virginia