[Limdep Nlogit List] estimating wtp with a cost-income ratio in the utility function

[John C. Whitehead]

Medard,

Did you make the cost coefficient fixed (no estimated standard deviation)
or log normal. It is my understanding that the latter will blow up your wtp
estimate. In my experience a fixed cost coefficient will cause no such
damage.

John Whitehead

On Mon, Oct 7, 2024 at 7:48 AM medard kakuru via Limdep <
limdep at mailman.sydney.edu.au> wrote:

> Dear All,
> I am estimating mixed logit models in preference and utility spaces. My wtp
> estimates are big as expected (because I made the cost parameter fixed -
> according to Giergizny et al., 2012). To remedy the wtp explosion, I
> include the cost-income ratio in the utility function, necessitating an
> adjustment in the usual formula of computing wtp. Please assist me with the
> adjusted syntax that takes account of the ratio.
> Thank you.
>
> Regards,
>
> Medard
> PhD Student,
> Makerere University Kampala
>
> On Thu, Oct 3, 2024 at 10:34 PM Steven Lavrenz via Limdep <
> limdep at mailman.sydney.edu.au> wrote:
>
> > Are these quantities referring to the same statistic? If so, why the
> > difference in naming convention within Limdep?
> >
> > Best Regards,
> > Steve
> >
> > --
> > Steven M. Lavrenz, PhD, RSP2I
> > Assistant Professor
> > Wayne State University
> > Civil and Environmental Engineering
> > 5050 Anthony Wayne Drive
> > Detroit, MI 48202
> > (313) 577-2086
> > slavrenz at wayne.edu<mailto:slavrenz at wayne.edu>
> >
> >
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