[Limdep Nlogit List] Welfare Measures in the Error Components ML model with Heteroscedastic Error Components
Mikołaj Czajkowski
miq at wne.uw.edu.pl
Sat Dec 20 23:36:01 EST 2008
Dear All,
I find it difficult to derive welfare measures for the Error Components
ML model. I suspect that the usual Hanemann's (1982) formula is not
enough in this case, since the alternatives are not independent. The
probability of choosing a particular alternative is known, however I
don't see how a change in expected maximum utility would simplify to the
usual log-sum expression in this case. Would it?
I searched through the literature, I was not able to find the formula
for CV derived explicitly for the case of EC-MNL. Could you possibly
suggest some papers on this or suggest a way to deal with this problem?
I will greatly appreciate any comments / suggestions.
Best regards,
--
Mikołaj Czajkowski
Warsaw Ecological Economics Center
University of Warsaw
http://www.woee.pl/
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