[Limdep Nlogit List] two-step nested logit estimation help

[Mausam Duggal]

Hi Kandice,

You need to input the inclusive value term just like another variable in
the upper level utility nest, which will have its own parameter value.

Mausam Duggal, MCIP, RPP

Senior Project Coordinator

MMM GROUP

100 Commerce Valley Drive West

Thornhill, ON Canada L3T 0A1

T: 905-882-4211, x6289

F: 905-882-7277

W: www.mmm.ca


-----Original Message-----
From: limdep-bounces at limdep.itls.usyd.edu.au
[mailto:limdep-bounces at limdep.itls.usyd.edu.au] On Behalf Of Kandice L.
Kleiber
Sent: Friday, April 03, 2009 9:29 PM
To: Limdep and Nlogit Mailing List
Subject: [Limdep Nlogit List] two-step nested logit estimation help

Hi ... Because I only have access to LimDep (without NLOGIT) for the
time, I
am trying to do a two-step estimation of a nested logit.  However, I'm
not
sure how to set up my code for LimDep (rather than NLOGIT).

My model looks like:
tree = land[corn(cc, sc, wc, oc), soy, wheat]  where cc, sc, wc, oc are
0-1
variables (where previous land came from) and corn, soy, and wheat are
proportion data.

I first try to estimate the corn(cc, sc, wc, oc) and save the inclusive
values.  I've tried just the basic multinomial logit model ... but then
I'm
not sure how to get my inclusive values into the next estimation set ...
I
can't find anything that really talks about setting this up in the
limdep
manuals.
First step:
nlogit;
lhs = prop;
choices = cc, sc, wc, oc;
rhs = one, pr41, pr42, pr43, ind1, ind2, ind3, ... ;
ivb = incl0$

Second step:
nlogit;
lhs = corn, soy, wheat;
choices = corn, soy, wheat;
rhs = one, age1, age2, ...  $
*How do I fit in the inclusive value??

The other option I have tried is setting the model up using the nested
logit
specification:
nlogit;
choices = cc, sc, wc, oc;
ivb = incl0;
tree = land[corn(cc, sc, wc, oc), soy, wheat];
model: U(cc) = bcc + bpr41*pr41+bind1*ind1 ... /
           U(sc) = bsc +.../
           U(wc) = bwc +... /
          U(oc) =       bpr44*pr44+ ... /
        U(corn) = ac+ ... /
        U(soy) = as+ ... /
        U(wheat) =     aed3*ed3 + ....;
ivb = incl;
conditional$

But this won't run and I'm not sure LimDep supports this.  Help?  And
thank
you!
Kandice Kleiber
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