[Limdep Nlogit List] How to interpret significance in DCMs?

Achilleas' gmail avassilopoulos.aua at gmail.com
Thu May 16 01:10:07 AEST 2019

Hi Richard,

Assuming that you ran a conditional logit, your results (in terms of
predicted choice probabilities) will not change. The differences you observe
in the magnitude and the statistical significance of the estimates when you
alter the base alternative and the base level of an attribute are due to the
change in the interpretation of coefficients (so in essence you are
comparing different effects).

You can use the ;WALD command to estimate the coefficients you would get
under a different base alternative. 


-----Original Message-----
From: Limdep <limdep-bounces at mailman.sydney.edu.au> On Behalf Of Richard
Sent: Tuesday, May 14, 2019 17:10
To: limdep at mailman.sydney.edu.au
Subject: [Limdep Nlogit List] How to interpret significance in DCMs?


How should the analyst interpret changes in significant variables simply due
to changing the base alternative in a discrete choice model?. In discrete
choice models, significance of a variable seems to be influenced not only by
the base level of the attribute, but also the base alternative.
How can the analyst still be confident in the stability of the results?


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