[Limdep Nlogit List] Interpretation of Mixed logit model

[FAN Zhou]

Dear Mik,


Thank you very much for your response.


I agree with your interpretation of such results. However, I wonder if it is worthwhile to further explore the heterogeneity in mean? Using the intersections, for example, ";rpl income". Because there is heterogeneity in presence, it seems the factors contribute to it should be tested, however, the mean itself is insignificant.

Cheers,
Fan

________________________________
From: Limdep <limdep-bounces at mailman.sydney.edu.au> on behalf of Mikołaj Czajkowski <miq at wne.uw.edu.pl>
Sent: Thursday, 17 August 2017 19:01
To: Limdep and Nlogit Mailing List
Subject: Re: [Limdep Nlogit List] Interpretation of Mixed logit model


Dear Fan,

in mixed logit a parameter is described using a parametric probability
distribution. This distribution could have a mean that is close to zero
(not significantly different) and some non-zero standard deviation
(significantly different from 0). This is a fine result meaning that on
average (mean) the effect is close to 0, but there is some heterogeneity
around this. On the other hand, if standard deviation is not
significantly different from 0 - you might as well model such a
parameter as fixed, as heterogeneity around the mean is not significant.

I cannot say if it makes sense for your variables / model, but
technically such a result is fine.

Best,
Mik



On 2017-08-17 10:49, FAN Zhou via Limdep wrote:
> Hi all,
>
>
> I have run a Mixed logit model with Nlogit 6. But I am confused by the results.
>
>
> I was wondering how to interpret the insignificant mean but significant standard distribution for a random parameter. For example, if I set "cost" as random parameter, the mean 'B_COST' is insignificant but its associated standard deviation "NsCOST" is significant. Does results like this make sense?
>
>
> I appreciate any help.
>
>
> Cheers,
>
> Fan
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