University of Florida
Abstract
Nested logit (NL) has been commonly used for discrete choice analysis,
including a wide range of applications such as travel mode choice, automobile
ownership, or location decisions. However, the classical NL models are
restricted by their limited representation capability and handcrafted utility
specification. While researchers introduced deep neural networks (DNNs) to
tackle such challenges, the existing DNNs cannot explicitly capture
inter-alternative correlations in the discrete choice context. To address the
challenges, this study proposes a novel concept - alternative graph - to
represent the relationships among travel mode alternatives. Using a nested
alternative graph, this study further designs a nested-utility graph neural
network (NestGNN) as a generalization of the classical NL model in the neural
network family. Theoretically, NestGNNs generalize the classical NL models and
existing DNNs in terms of model representation, while retaining the crucial
two-layer substitution patterns of the NL models: proportional substitution
within a nest but non-proportional substitution beyond a nest. Empirically, we
find that the NestGNNs significantly outperform the benchmark models,
particularly the corresponding NL models by 9.2\%. As shown by elasticity
tables and substitution visualization, NestGNNs retain the two-layer
substitution patterns as the NL model, and yet presents more flexibility in its
model design space. Overall, our study demonstrates the power of NestGNN in
prediction, interpretation, and its flexibility of generalizing the classical
NL model for analyzing travel mode choice.
AI Insights - NestGNN encodes inter‑alternative correlations via an alternative graph, absent in classic NL.
- The authors prove NL’s utility recursion equals a special graph neural network.
- It preserves proportional substitution within nests and non‑proportional across nests.
- Elasticity tables confirm NestGNN recovers the two‑layer substitution pattern.
- Modular design lets researchers plug attention or VAE modules for richer models.
- Recommended reading: Train’s Discrete Choice Methods and Veličković’s Graph Attention Networks.
- GNNs in choice modeling promise better forecasting and policy insight, sparking new research.
McGill University
Abstract
Global comparisons of wellbeing increasingly rely on survey questions that
ask respondents to evaluate their lives, most commonly in the form of "life
satisfaction" and "Cantril ladder" items. These measures underpin international
rankings such as the World Happiness Report and inform policy initiatives
worldwide, yet their comparability has not been established with contemporary
global data. Using the Gallup World Poll, Global Flourishing Study, and World
Values Survey, I show that the two question formats yield divergent
distributions, rankings, and response patterns that vary across countries and
surveys, defying simple explanations. To explore differences in respondents'
cognitive interpretations, I compare regression coefficients from the Global
Flourishing Study, analyzing how each question wording relates to life
circumstances. While international rankings of wellbeing are unstable, the
scientific study of the determinants of life evaluations appears more robust.
Together, the findings underscore the need for a renewed research agenda on
critical limitations to cross-country comparability of wellbeing.
AI Insights - The GFS dataset asks for income in local currencies, complicating cross‑country comparisons.
- Financial literacy is strongly linked to higher savings rates, better retirement planning, and overall well‑being.
- Financial education programs consistently improve decision‑making and reduce debt levels.
- The GFS captures a wide array of variables: employment status, education level, religious practice, health behaviors, and social connections.
- Researchers use the GFS to study how financial inclusion can lower poverty and spur economic growth.
- The GFS is freely downloadable from the World Bank, enabling open‑access analysis worldwide.
- Key terms: “Financial Literacy” = knowledge of personal finance concepts; “Financial Education” = interventions that build that knowledge.