[Limdep Nlogit List] Limdep Digest, Vol 190, Issue 1

[William Greene]

Richard. There is nothing to resolve. The program is warning you not to
use an automatically computed pseudo R squared because for your model
it is not possible to automate the computation of the denominator of the
statistic.  The pseudo R squared is not useful for a latent class model in
any event. You can ignore this warning, though you should also not use
a pseudo R squared for this model.
/B. Greene.


On Fri, Nov 24, 2023 at 5:47 AM Richard Yao via Limdep <
limdep at mailman.sydney.edu.au> wrote:

> Dear Professor Greene:
>
> I employed NLOGIT 6.0 to compute a latent class logit model with two
> classes, as outlined below:
>
> ? LCL model - 2 latent classes
> NLOGIT
>     ;lhs = chosen,cset,altij
>     ;choices=sq,a,b
>     ;maxit=200 ? panel's length & Max. num. of iterations
>     ;pds = times
>     ;lcm ;pts = 2 ? specifies it is a LCM and the number of classes
>     ;pds=times ? specifies the log-likelihood with the product
> operator,taking the product of the probabilities from 6 choice sets
>     ;parameters ? estimate individual specific parameters
>     ;model:
>      U(sq)=               beh1*e_h1 + beh2*e_h2 + bmn1*mn1 + bmn2*mn2 +
> bpol1*pol1 + bpol2*pol2 + bcost*cost /
>      U(a) = baltd*alt_d + beh1*e_h1 + beh2*e_h2 + bmn1*mn1 + bmn2*mn2 +
> bpol1*pol1 + bpol2*pol2 + bcost*cost /
>      U(b) = baltd*alt_d + beh1*e_h1 + beh2*e_h2 + bmn1*mn1 + bmn2*mn2 +
> bpol1*pol1 + bpol2*pol2 + bcost*cost $
>
> The execution was successful, yielding useful results. However, I observed
> a comment in the MNL model estimates table:
>
> "Warning: The model lacks a complete set of ASCs. R-squared is problematic.
> Consider using the model setup with ;RHS=one to obtain LogL0."
>
> I would appreciate your guidance on resolving this matter.
>
> Thank you in advance for your response.
>
> With best wishes,
>
> Richard
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>

-- 
William Greene
Department of Economics, emeritus
Stern School of Business, New York University
URL: https://protect-au.mimecast.com/s/xIlqCyojxQT7o4AyQFZNA3a?domain=people.stern.nyu.edu
Email: wgreene at stern.nyu.edu
Editor in Chief: Foundations and Trends in Econometrics
Associate Editor: Economics Letters
Associate Editor: Journal of Business and Economic Statistics