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  • HELP! Alternative-specific conditional logit (McFadden's choice) model

    Hey guys and girls,

    I am new here. I am a new user of Stata, too. It is my second day. The reason for switching from SPSS to Stata is that I have to calculate an alternative-specific conditional logit model in my PhD thesis, which is not implemented in SPSS yet.
    Trying to get familiar with the ASCLOGT procedures in Stata I played with the car choice example dataset. In reference to that i got some questions and I really hope someone you is able to help me:

    The example model consists of case variables "sex" and "income" and the alternative-specific variable "dealer", see http://www.stata.com/manuals13/rasclogit.pdf.
    If I have a look at the results as odd ratios Stata calculated alternative-specific odd ratios for all case-specific variables. So raising a person’s income increases the likelihood that the person purchases a Japanese or European car, for example. That is quite nice so far as well as clear.
    In contrast to that I am not sure how to interpret the odd ratio for dealer. Should it tell me that raising the number of car dealers (no matter what type of car) increases the likelihood that a person purchases a car (once again: no matter what type of car), should not it?
    Anyway, is there any possibility to get the odd ratios for alternative-specific variables alternative-specific like the case-specific variables, so that I could ascertain that a raising number of car dealers for European cars let increase the likelihood to purchase a European car maybe? I guess, it might be a quite interesting information as well, especially looking forward my PhD project.

    Using the postestimation tools for ASCLOGIT leads to further knowledge, see http://www.stata.com/manuals13/rascl...estimation.pdf.
    The estat mfx procedure calculates marginal effects of the model alternative-specific. Due to that I got few questions as well:
    What kind of marginal effect is calculated there? Discrete changes? Marginal effects at the means? Average marginal effects? Or something else? But whatever there is calculated, how do I calculate discrete changes, marginal effects at the means and average marginal effects for a ASCLOGUT model in Stata? I did not find any working procedure.
    In addition to that: I was not able to calculate Hausman's specification test or likelihood-ratio test, too. And I am missing McFaddens pseudo R2.

    PS: What is the best way to avoid (and check) multicollinearity within an ASCLOGIT model using Stata?

    Well, I know, lots of questions and some of them are stupid maybe, but I really hope someone is able to help me.
    Thank you very much. I am looking to hear from you soon!

    Best wishes from Marburg, Germany
    Felix


  • #2
    I believe I can help with one of your difficulties:
    "In contrast to that I am not sure how to interpret the odd ratio for dealer. Should it tell me that raising the number of car dealers (no matter what type of car) increases the likelihood that a person purchases a car (once again: no matter what type of car), should not it?"

    No. Referring to the example in the manual, I see that the "dealer" variable is the number of car dealers of each particular "nationality" in the consumer's city. Per the manual: "The variable dealer is an alternative-specific variable."
    Thus, the coefficient for the dealer variable indicates the increase in the log-odds of purchasing car type j for a unit increase in the number of dealerships of car type j to which the consumer is exposed.

    Regards, Mike

    Comment


    • #3
      I believe I can help with one of your difficulties:
      "In contrast to that I am not sure how to interpret the odd ratio for dealer. Should it tell me that raising the number of car dealers (no matter what type of car) increases the likelihood that a person purchases a car (once again: no matter what type of car), should not it?"

      No. Referring to the example in the manual, I see that the "dealer" variable is the number of car dealers of each particular "nationality" in the consumer's city. Per the manual: "The variable dealer is an alternative-specific variable."
      Thus, the coefficient for the dealer variable indicates the increase in the log-odds of purchasing car type j for a unit increase in the number of dealerships of car type j to which the consumer is exposed.

      Regards, Mike

      Comment


      • #4
        Hi Mike,

        thank you very much for your reply.
        I agree with you. But is it a good idea to have the same odd ratio for all car types? Why I got the same odd ratio for a unit increase in the number of dealer, but no matter what car type a dealer sales, it is the same odds ratio, while the odd ratios for a unit increase of income differ for each car type. I do not understand that. I expected that the odd ratios regarding the number of dealers also differ by car type.
        Three single birary logit models (one per car type) lead to different odd ratios for a unit increase the number of dealer aus well... Very difficult!

        Regards, Felix

        Comment


        • #5
          My *guess* here (to be corrected by someone who works regularly with these models) would be that the interactions of choice specific variables with the choice is not estimable.

          Regards, Mike

          Comment


          • #6
            Thank you for your input, Mike.

            What about the other qestions/problems? No ASCLOGIT experts available here?

            Regards, Felix

            Comment

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