[Limdep Nlogit List] random parameter estimation and fixed effects
Jaap Bos
jwb_bos at yahoo.com
Tue Jun 20 01:31:15 EST 2006
Dear all,
I am estimating a random parameter frontier. I want to compare estimates - in particular marginal effects - with a fixed effect frontier estimation.
I'm struggling with comparing the results for both specifications. What I try to do therefore is estimate a random parameter frontier with firm dummies. However, that specification (almost) never converges.
I know that the random parameter model and the fixed effects model are not nested. Hence: anyone who has ideas on how to choose a preferred specification?
regards, Jaap Bos
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