[Limdep Nlogit List] \MNL and marginal effects with NLOGIT?

Kandice L. Kleiber kleiberk at onid.orst.edu
Wed Aug 13 01:00:41 EST 2008


Hi ... I'm new to LimDep/NLOGIT so please bear with me!  I'm trying to set
up a nested logit piece by piece (ie add in a few variables at a time).
Because I'm waiting on same data that is choice specific data, I'm basically
setting up a multinomial logit using NLOGIT.  The data that I'm using is
observation specific.

I'm trying to set up the model so it's ready to use once I get the rest of
the choice specific data, but until then I would like to keep using what I
have.  My problem is in calculating marginal effects.  I know that if I use
the LOGIT command for my MNL I just need ;marginal effects.  I think if I
had the choice specific data I could use NLOGIT and I would need ;effects
price[*] ... along those lines.  But when I use ;effects in NLOGIT my output
doesn't make much sense - I'm given mean and standard deviation, which does
not look anything like the LimDep manual has.  I think this is because I'm
basically taking the marginal effects of a MNL in NLOGIT.  But does this
matter?  My code and output is below ... price is contant across all choices
but is set up in a matrix  with the value down the diagonal.  Same with the
other variables.

Please help!  Is there a way to continue down this path, or should I go back
to LOGIT until I get my data to create a nested logit?
Thank you!!

--> READ
    ; FILE = D:\LIMDEPDATA\ATTEMPT201.XLS
    ; NVAR = 15 ; NOBS = 1000
    ; NAMES = 1$
--> NLOGIT
    ; LHS = PROP
    ; CHOICES = cORNCORN, SOYCORN, CORN, SOY
    ; RHS = ONE, PRATIO1, PRATIO2, PRATIO3, HEL1, HEL2, HEL3, SL011, SL012,
S...
    ; EFFECTS: PRATIO1[*] / PRATIO2[*] / PRATIO3[*]$



+---------------------------------------------+
| Discrete choice and multinomial logit models|
+---------------------------------------------+
Normal exit from iterations. Exit status=0.
+---------------------------------------------+
| Discrete choice (multinomial logit) model   |
| Maximum Likelihood Estimates                |
| Model estimated: Aug 12, 2008 at 10:54:59AM.|
| Dependent variable               Choice     |
| Weighting variable                 None     |
| Number of observations              106     |
| Iterations completed                  5     |
| Log likelihood function       -113.7578     |
| Number of parameters                 12     |
| Info. Criterion: AIC =          2.37279     |
|   Finite Sample: AIC =          2.40444     |
| Info. Criterion: BIC =          2.67431     |
| Info. Criterion:HQIC =          2.49500     |
| R2=1-LogL/LogL*  Log-L fncn  R-sqrd  RsqAdj |
| Constants only.  Must be computed directly. |
|                  Use NLOGIT ;...; RHS=ONE $ |
| Chi-squared[ 9]          =      1.82943     |
| Prob [ chi squared > value ] =   .99389     |
| Response data are given as proportions.     |
| Number of obs.=   106, skipped   0 bad obs. |
+---------------------------------------------+
+---------------------------------------------+
| Notes No coefficients=> P(i,j)=1/J(i).      |
|       Constants only => P(i,j) uses ASCs    |
|         only. N(j)/N if fixed choice set.   |
|         N(j) = total sample frequency for j |
|         N    = total sample frequency.      |
|       These 2 models are simple MNL models. |
|       R-sqrd = 1 - LogL(model)/logL(other)  |
|       RsqAdj=1-[nJ/(nJ-nparm)]*(1-R-sqrd)   |
|         nJ   = sum over i, choice set sizes |
+---------------------------------------------+
+--------+--------------+----------------+--------+--------+
|Variable| Coefficient  | Standard Error |b/St.Er.|P[|Z|>z]|
+--------+--------------+----------------+--------+--------+
 PRATIO1 |    65.1147789      113.523892      .574   .5663
 PRATIO2 |   -17.9414075      35.6312734     -.504   .6146
 PRATIO3 |    11.3707783      27.9534400      .407   .6842
 HEL1    |    -.85499804      2.44543336     -.350   .7266
 HEL2    |     .03044104       .67727779      .045   .9642
 HEL3    |     .00948316       .53309998      .018   .9858
 SL011   |   -3.44864601      7.49912020     -.460   .6456
 SL012   |    1.51466998      2.68596449      .564   .5728
 SL013   |    -.48910971      2.06371694     -.237   .8127
 A_CORNCO|   -64.9198907      111.509720     -.582   .5604
 A_SOYCOR|    15.4826457      34.7911622      .445   .6563
 A_CORN  |   -11.1148123      27.3848457     -.406   .6848
+---------------------------------------------------+
| Derivative (times 100) averaged over observations.|
| Attribute is PRATIO1  in choice CORNCORN          |
| Effects on probabilities of all choices in model: |
| * = Direct Derivative effect of the attribute.    |
|                                  Mean    St.Dev   |
| *     Choice=CORNCORN         84.6351   59.7107   |
|       Choice=SOYCORN         -12.9924    6.1500   |
|       Choice=CORN            -31.1550   25.5122   |
|       Choice=SOY             -40.4877   28.3915   |
+---------------------------------------------------+
+---------------------------------------------------+
| Derivative (times 100) averaged over observations.|
| Attribute is PRATIO1  in choice SOYCORN           |
| Effects on probabilities of all choices in model: |
| * = Direct Derivative effect of the attribute.    |
|                                  Mean    St.Dev   |
|       Choice=CORNCORN        -12.9924    6.1500   |
| *     Choice=SOYCORN         921.0375  157.5860   |
|       Choice=CORN           -376.5597   47.7207   |
|       Choice=SOY            -531.4850  115.8219   |
+---------------------------------------------------+
+---------------------------------------------------+
| Derivative (times 100) averaged over observations.|
| Attribute is PRATIO1  in choice CORN              |
| Effects on probabilities of all choices in model: |
| * = Direct Derivative effect of the attribute.    |
|                                  Mean    St.Dev   |
|       Choice=CORNCORN        -31.1550   25.5122   |
|       Choice=SOYCORN        -376.5597   47.7207   |
| *     Choice=CORN           1458.0870   66.6691   |
|       Choice=SOY           -1050.3730   91.3753   |
+---------------------------------------------------+
+---------------------------------------------------+
| Derivative (times 100) averaged over observations.|
| Attribute is PRATIO1  in choice SOY               |
| Effects on probabilities of all choices in model: |
| * = Direct Derivative effect of the attribute.    |
|                                  Mean    St.Dev   |
|       Choice=CORNCORN        -40.4877   28.3915   |
|       Choice=SOYCORN        -531.4850  115.8219   |
|       Choice=CORN          -1050.3730   91.3753   |
| *     Choice=SOY            1622.3460    3.2597   |
+---------------------------------------------------+


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