Abstract

In linear regressions, the ecological fallacy—the erroneous belief that aggregate-level coefficients coincide with individual-level coefficients—arises when individual outcomes depend on the group environment. This paper suggest that such “group effects” determine also the circumstances under which the ecological fallacy vanishes from basic discrete-choice models. In particular, when controlling for group effects, it is shown that the same coefficients arise from a conditional logit model, which is a popular framework to analyse individual choices, and a Poisson regression, which provides a framework to analyse the aggregate number (or count) of such choices across groups.

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