Bundle Choice Model with Endogenous Regressors: An Application to Soda Tax
含内生解释变量的商品组合选择模型:汽水税应用
This paper proposes a Bayesian factor-augmented bundle choice model to estimate joint consumption as well as the substitutability and complementarity of multiple goods in the presence of endogenous regressors. The model extends the two primary treatments of endogeneity in existing bundle choice models: (1) endogenous market-level prices and (2) time-invariant unobserved individual heterogeneity. A Bayesian sparse factor approach is employed to capture high-dimensional error…