The logsum parameters (i.e. parameters) create jointness between the single discrete choice component and the MDCEV components of the MDCEV-MNL model. There are two logsum parameters: (1) The logsum parameter for the makes/models corresponding to the old SUV, old minivan, new minivan, old van, and new van vehicle type/vintage categories is estimated to be 0.5354 (the t-statistic for the test that the parameter is different from 1 is 4.61), (2) The logsum parameter for the rest of the vehicle type/vintages is estimated to be 0.8378 (the t-statistic for the test that the parameter is different from 1 is 1.05). The logsum parameters indicate the presence of common unobserved attributes that affect the utilities of all makes/models corresponding to a given vehicle type/vintage category.
parameters) create jointness between the single discrete choice component and the MDCEV components of the MDCEV-MNL model. There are two logsum parameters: (1) The logsum parameter for the makes/models