The integer programing extreme value (IPEV) model accounts the integer property of trip data. The IPEV model is consistent with utility theory and provides a single structural framework for simultaneously modeling the choice of alternatives and quantity decisions with the constraint of the integer value of consumption. This model has a closed-form probability expression. This sample files include the estimation code using closed-form or simulation, the demand prediction, the welfare analysis, and the sample dataset.

Figure 1. Continuous and integer demand models.

• GAUSS platform Aptech
• maxlik or maxlikmt Aptech

Estimation:

• Set the parameters in IPEV.gss (required maxlik) or IPEVmt.gss (required maxlikmt)
  • U_FUNCTION: the utility function
  • For the estimation with closed-form, set SIMULATE = 0
  • For the estimation with simulation, set SIMULATE = 1
• Run the estimation code in the GAUSS:

>> run IPEV.gss

or

>> run IPEVmt.gss

Prediction:

• Set the parameters in DEMAND.gss
  • U_FUNCTION: the utility function
  • B: vector of estimated parameters
  • VCOV: variance-covariance matrix
  • Set secnarios for prediction and welfare analysis.
• Run the prediction code in the GAUSS:

>> run DEMAND.gss

For the detail, see manual.pdf.

MIT License

Kuriyama, K., Y. Shoji, and T. Tsuge. (2023) The integer programing extreme value (IPEV) model: An application for estimation of the leisure trip demand. NRE Discussion Papers No. 2023-01, Natural Resource Economics, Division of Natural Resource Economics, Graduate School of Agriculture, Kyoto University.

• MDCEV by Chandra R. Bhat
• rmdcev by Patrick Lloyd-Smith