[Limdep Nlogit List] Bounded coefficients in NLOGIT estimation

William Greene wgreene at stern.nyu.edu
Fri Jan 3 13:09:45 AEDT 2020

Raffaele. I don't see clearly what "an interaction coefficient" looks like
in a multinomial
choice model where there are multiple utility functions.  In any event,
there is no direct
way to constrain the coefficients in the MNL.  I would note, in general,
when you try to
constrain the coefficients to a range, one of two things happens.  (1) The
constraint is
unnecessary, and the unrestricted coefficient ends up in the right way
anyway.  (2) The
constraint is inappropriate for the data, end the estimates end up at a
boundary of the
range.  What does not happen is that there is some constrained estimate in
the middle
of the range that would not be found if some constraint were not imposed.
In my experience,
there is usually no payoff to trying to constrain a parameter to a range
like this.

On Thu, Jan 2, 2020 at 7:31 PM Raffaele Zanoli <zanoli at agrecon.univpm.it>

> Hello Bill,
> I am trying to estimate a model in NLOGIT6 (for noe a simple MNL) where I
> have an interaction coefficient that should be bounded between the unit
> interval [0,1].
> Is there any way to do this? I could not find any mention to this in the
> Manuals (only fixed chefs or starting values)
> Thanks
> Raffaele
> Prof. Dr. Raffaele Zanoli
> Professor of Food Marketing & Management
> Department of Agricultural, Food and Environmental Sciences
> Università Politecnica delle Marche
> Via Brecce Bianche
> 60129 Ancona- Italy
> tel. +39 071 220 4929
> mobile +39 3483235654
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William Greene
Department of Economics, emeritus
Stern School of Business, New York University
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