Aggregation in discrete choice models: an illustration of non-linear aggregation

Introduction In this chapter aggregation is studied for the dass of non-linear micro models most commonly employed by econometricians - discrete choice models, such as probit and logit models. Several previous studies on discrete choice models have considered issues of aggregation, but that work was done in isolation from the more general theory of non-linear aggregation. I This study is intended to illustrate the more general problem of aggregation of any nonlinear micro model.