[Limdep Nlogit List] Finding confidence intervals of WTA after LCRPLOGIT

[William Greene]

Deepthi: Your results did not show how you computed class-wise WTA values.
I assume they are computed using ratios of parameters.  But, since the
parameters
are random, what you are computing is a distribution of WTA values. A
"confidence
interval" is ambiguous.  The variation in an interval has two meanings: (1)
sampling
variability based on the estimated parameters and (2) the estimated
variation due
to the randomness of the specified parameters.  I'd note, ratios of random
parameters
are problematic as well.  So,.... before I can suggest how to do the
computation you
asked about, I need a suggestion of what kind of interval you are looking
for.
   I note a subtle fluke in your results that I would guess you did not
intend. Notice in
the RP model results, the third and fourth estimated standard errors are
identical.
That happened because the variables CONVTOCT and CONVTONT have the same
first 6 characters.  The first 6 characters in the name of the
variable with the RP
coefficient are used to create the name for the standard deviation.  The
constructed
name is Ns******, which will end up the same both times.  When parameter
names
are the same, NLOGIT takes that to mean you want to constrain them to be
equal,
which I assume you did not expect.  To fix this, just change one of the
variable names.
You'll then have to adjust the RHS and FCN lists.
One other small point.   You have a lot of random parameters.  The model
estimated OK,
but only 20 Halton draws is probably a little low.  You might get better
results is you raise
that to 50 or 100.
Sincerely,
B,. Greene

On Wed, Mar 27, 2024 at 9:31 AM Kolady, Deepthi Elizabeth P via Limdep <
limdep at mailman.sydney.edu.au> wrote:

> Hello Dr.Greene,
>
> I use discrete choice data to estimate latent class-wise willingness to
> accept (WTA) values. I am using the LCRPLOGIT command because I would like
> to combine the random parameter logit model with the latent class model to
> account for heterogeneity. I am using the LCM command to use a variable of
> interest to determine class probability (in my case, the climate change
> concern scale).
>
> I have attached my model estimation and results. I used this result to
> estimate class-wise WTA values. Can I estimate the confidence interval for
> WTA values using Krinsky and Robb's method after LCRPLOGIT estimation?
> I can generate a K-density plot and show the distribution of class-wise or
> individual WTA, but as a reviewer asked, I need help figuring out how to
> get confidence intervals to report.
>
> Thank you in advance for your help.
>
> Sincerely,
> Deepthi
>
>
>
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-- 
William Greene
Department of Economics, emeritus
Stern School of Business, New York University
URL: https://url.au.m.mimecastprotect.com/s/46Q4CBNqjlCP7YYBwizBZ2J?domain=people.stern.nyu.edu
Email: wgreene at stern.nyu.edu
Editor in Chief: Foundations and Trends in Econometrics
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