Hello every body
In blp syntax ( blp depvar indepvars, stochastic() endovars() markets() vce ) we have to determine the endogenous and stochastic variables. My data is an consist of quantity, properties and prices of 2 brands in 14 cities and 34 months. but there is a deference between blp and nevo(2001) witch is; my prices are exogenous ( government forces them without respect to demand or anything) so I don't have the endogeneity problem and dont need any instruments etc. Actually my situation is like Nevo(2000) first distributional assumption which is the iid assumption in error term and constant coefficients (no demographics used) and teta2=0. This becomes the most simple form of model in nevo(2000).
In this situation blp syntax doesn't allow me to estimate my model without stochastic and endo variables. it runs only the original model. what can I do?
This is the paper nevo(2000) full name : A Practitioner’s Guide to Estimation of Random-Coefficients Logit Models of Demand
I appreciate any help on this.
Thank you
In blp syntax ( blp depvar indepvars, stochastic() endovars() markets() vce ) we have to determine the endogenous and stochastic variables. My data is an consist of quantity, properties and prices of 2 brands in 14 cities and 34 months. but there is a deference between blp and nevo(2001) witch is; my prices are exogenous ( government forces them without respect to demand or anything) so I don't have the endogeneity problem and dont need any instruments etc. Actually my situation is like Nevo(2000) first distributional assumption which is the iid assumption in error term and constant coefficients (no demographics used) and teta2=0. This becomes the most simple form of model in nevo(2000).
In this situation blp syntax doesn't allow me to estimate my model without stochastic and endo variables. it runs only the original model. what can I do?
This is the paper nevo(2000) full name : A Practitioner’s Guide to Estimation of Random-Coefficients Logit Models of Demand
I appreciate any help on this.
Thank you
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