SV: [Limdep Nlogit List] mean wtp in logit

[Fredrik Carlsson]

Jae,
The exact calculation would depend on model specification, and it is a little bit unclear if you are estimating using the response to the first question or not. But let us say that you only have an intercept and a bid, then the mean WTP would be the ratio between the intercept and the bid coefficient. You can use the wald-statement in limdep to calculate this and to get the standard errors of the estimate.

logit;lhs=choice;rhs=one,bid$
wald;start=b;var=varb;labels=b1,b2;
fn1=-b1/b2$

If the lhs-variables include socio-economic characteristics you could for example calculate mean WTP at sample mean, so if
logit;lhs=choice;rhs=one,bid,female$

then mean wtp is -(b1 + b3*Average number of females)/b2



Fredrik Carlsson
Professor
Department of Economics, University of Gothenburg
Box 640, SE-405 40 Gothenburg, Sweden
Tel: +46 31 7864174
Fax: +46 31 7861043
Mobile: +46 0709 267 097
Home page:
http://www.handels.gu.se/econ/fredrik.carlsson/
________________________________________
Från: limdep-bounces at limdep.itls.usyd.edu.au [limdep-bounces at limdep.itls.usyd.edu.au] för Jae-Hwan Han [jaehwanhan at hotmail.com]
Skickat: den 19 september 2008 04:21
Till: limdep at limdep.itls.usyd.edu.au
Ämne: [Limdep Nlogit List] mean wtp in logit

Hello limdepers

I am trying to calculate mean willingness to pay(WTP) in logit model.
Consumers were presented with a referendum question regarding their preferences of GM foods and a follow-up
question concerning their willingness to pay a premium for non-GM foods.
Bid is included in explanatory variables. I ran logit model and got results including marginal effects.
How do I get mean WTP?

Many thanks in advance.

Jae

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