Statistics Forum: Mat Weldon
Thursday 20 February 2014, 1200-1230
A54, Postgraduate Statistics Centre Lecture Theatre
Estimation of a School Choice Model using Preferences Inferred from Observed Allocations
In order to analyse the determinants of secondary school demand in the UK, a latent utility model for school choice is proposed. However, preference data are not available, and data on observed allocations depends on complex interactions between pupils' and schools' preferences. We show how structural properties of school allocations can be exploited to make inferences about preferences on one side of the market, given preferences on the other side - so called "revealed preferences". We present a method for simultaneously estimating pupil and school choice models within a Gibbs sampler by simulating latent utilities and "conditionally revealed preferences".