[Limdep Nlogit List] weighting and proportions data

George Frisvold frisvold at ag.arizona.edu
Thu Aug 3 15:26:17 EST 2006


Hello All,

I have a data set with proportions data for land allocated to different
activities.
So the data is proportion of acreage in a region applying a particular
technique.
Looking at related literature, a number of studies run multinomial logit
regressions (implicitly) treating land units as N.
There seem to me to be 3 problems here:
(1) This has, as the LIMDEP manual says, "the surprising side effect of
producing implausibly
small standard errors"  because each unit of land is treated as an
observation.
(2) Further, one can get even smaller standard errors by changing units
(e.g. from square miles to hectares to acres)
(3) Because individuals are making decisions about multiple units of land
doesn't seem to fit the notion of a binomial trial
(unless you think of a farmer carring out 500 "separate" trials on 500
acres.

I'd welcome any ideas about a defensible way to weight the data.

Thanks,

George F




More information about the Limdep mailing list