[Limdep Nlogit List] welfare calculation in discrete choice experiments
Mikołaj Czajkowski
miq at wne.uw.edu.pl
Thu Mar 5 01:15:34 EST 2009
Caroline Johanna Biehl wrote:
> Dear all,
> I have a question concerning welfare calculations (compensating variation CV, Hanemann (1982)) based on a choice experiment. I did a latent class model in nlogit and found 2 distinct classes. I have alternative specific price effects in my model.
> CV= 1/alpha (ln (sum exp (V0))-ln (sum exp(V1)) )
> Since alpha is supossed to equal the price effect when assuming no income effects, i have now the problem that i have several alphas (for each alternative). Does anyone know how to deal with that?
>
Dear Caroline,
In virtually all CE applications I have seen the price coefficient was
not alternative specific. What is your interpretation of alternative
specific price coefficient? Does it make sense for the marginal utility
of money to vary with alternative?
Best regards,
--
Mikolaj Czajkowski
Warsaw Ecological Economics Center
University of Warsaw
http://www.woee.pl/
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