Abstract
In this paper we estimate three different discrete choice models of provider choice using data from the rural District of Ouidah in Bénin. These three model are: Multinomial Logit (ML); (2) Independent Multinomial Probit (IMP); (3) Multinomial Probit (MP). A comparison of IMP and MP allows us to reject the independence assumption between providers. Furthermore, the cross-price elasticities computed from the restrictive specifications (ML and IMP) are dramatically different from those computed from the more general one (MP). These results cast some doubt on the validity of the previous findings and policy recommendations that are typically based on the ML specification.
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