[Limdep Nlogit List] Calculating Standard Errors for Arc Elasticities

Ana Claudia Sant'Anna acsantanna at ksu.edu
Thu Mar 9 03:02:07 AEDT 2017


Dear list members,



Following the "Applied Choice Analysis" book 2nd Edition, I am estimating the arc elasticities for dummy attributes in a multinomial logit model using the simulations code, scenario and arc (p. 512-526).



My question is how to calculate the standard errors for these arc elasticities.



Here is the code I am using and the results I am getting:



|-> RPLOGIT ; lhs = choice, cset, alti

            ; Choices = lease, partner, supply, out, stop

            ; Model:

            U(lease) = a0 + a1*rate + a2*risk + a3*length + a11*more1/

            U(partner) = b0 + b2*risk + b3*length + b4* sharepay + b5*trs + b11*more1/

            U(supply) = c0 + c2*risk + c3*length + c5*trs + c6*plant + c7*harv + c8*delivery + c9*mbuyall + c11*more1/

            U(stop) = d0 + d11*more1

            ; Full;pwt

            ; RPM =well, relate

            ; FCN = a0(n), b0(n), c0(n), d0(n)

            ; Halton

            ; Pts = 1000

            ; Pds = 6

            ; Maxit = 1000

            ; Alg = BFGS

            ; tlb =1e-20

            ; tlg = 1e-6

            ; tlf = 1e-20

            ; output = 1

            ;simulation;arc

            ;scenario: mbuyall(supply)=0 & mbuyall(supply)=1

            ; Parameters

            ;export=tables$

+---------------------------------------------+

| Random Parameters Logit Model               |

| Model Simulation Using Previous Estimates   |

| Number of observations              648     |

+---------------------------------------------+



+------------------------------------------------------+

|Simulations of Probability Model                      |

|Model: Random Parameters Logit Model                  |

|Simulated choice set may be a subset of the choices.  |

|Number of individuals is the probability times the    |

|number of observations in the simulated sample.       |

|Column totals may be affected by rounding error.      |

|The model used was simulated with    648 observations.|

+------------------------------------------------------+



----------------------------------------------------------------------------

Estimated Arc Elasticities Based on the Specified Scenario. Rows in the table

report 0.00 if the indicated attribute did not change in the scenario

or if the average probability or average attribute was zero in the sample.

Estimated values are averaged over all individuals used in the simulation.

Rows of the table in which no changes took place are not shown.

----------------------------------------------------------------------------

Attr Changed in | Change in Probability of Alternative

----------------------------------------------------------------------------

Choice SUPPLY   | LEASE     PARTNER   SUPPLY    OUT       STOP

   x = C9       |    -.012     -.014      .178     -.025     -.002

----------------------------------------------------------------------------



-------------------------------------------------------------------------

Specification of scenario 1 is:

Attribute  Alternatives affected            Change type             Value

---------  -------------------------------  ------------------- ---------

MBUYALL    SUPPLY                           Fix at new value         .000

-------------------------------------------------------------------------

The simulator located    648 observations for this scenario.

Simulated Probabilities (shares) for this scenario:

+----------+--------------+--------------+------------------+

|Choice    |     Base     |   Scenario   | Scenario - Base  |

|          |%Share Number |%Share Number |ChgShare ChgNumber|

+----------+--------------+--------------+------------------+

|LEASE     | 18.968   123 | 19.443   126 |   .475%        3 |

|PARTNER   | 21.290   138 | 21.913   142 |   .623%        4 |

|SUPPLY    | 11.218    73 |  8.129    53 | -3.089%      -20 |

|OUT       | 35.834   232 | 37.765   245 |  1.930%       13 |

|STOP      | 12.689    82 | 12.749    83 |   .061%        1 |

|Total     |100.000   648 |100.000   649 |   .000%        1 |

+----------+--------------+--------------+------------------+



-------------------------------------------------------------------------

Specification of scenario 2 is:

Attribute  Alternatives affected            Change type             Value

---------  -------------------------------  ------------------- ---------

MBUYALL    SUPPLY                           Fix at new value        1.000

-------------------------------------------------------------------------

The simulator located    648 observations for this scenario.

Simulated Probabilities (shares) for this scenario:

+----------+--------------+--------------+------------------+

|Choice    |     Base     |   Scenario   | Scenario - Base  |

|          |%Share Number |%Share Number |ChgShare ChgNumber|

+----------+--------------+--------------+------------------+

|LEASE     | 18.968   123 | 18.407   119 |  -.562%       -4 |

|PARTNER   | 21.290   138 | 20.636   134 |  -.654%       -4 |

|SUPPLY    | 11.218    73 | 14.602    95 |  3.384%       22 |

|OUT       | 35.834   232 | 33.730   219 | -2.105%      -13 |

|STOP      | 12.689    82 | 12.626    82 |  -.063%        0 |

|Total     |100.000   648 |100.000   649 |   .000%        1 |

+----------+--------------+--------------+------------------+



The simulator located    648 observations for this scenario.

Pairwise Comparisons of Specified Scenarios

Base     for this comparison is scenario 1.

Scenario for this comparison is scenario 2.

+----------+--------------+--------------+------------------+

|Choice    |     Base     |   Scenario   | Scenario - Base  |

|          |%Share Number |%Share Number |ChgShare ChgNumber|

+----------+--------------+--------------+------------------+

|LEASE     | 19.443   126 | 18.407   119 | -1.037%       -7 |

|PARTNER   | 21.913   142 | 20.636   134 | -1.277%       -8 |

|SUPPLY    |  8.129    53 | 14.602    95 |  6.473%       42 |

|OUT       | 37.765   245 | 33.730   219 | -4.035%      -26 |

|STOP      | 12.749    83 | 12.626    82 |  -.124%       -1 |

|Total     |100.000   649 |100.000   649 |   .000%        0 |

+----------+--------------+--------------+------------------+



Thank you for your help,



Ana Claudia





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