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  • Estimate choice model - Data issue

    Hello,

    I am trying to estimate the schooling decision in a 2-period model. In t=1, student decide whether to go to high school. In t=2, decide whether to go to college.
    In the data set, there is one variable "school" which = 1 if student go to high school/college; and =0 if not for period 1; and =1 if student go to college, = 0 if not for period 2. Another variable is "period", which equals 1 for period 1, and equals 2 for period 2.
    There are also other variables describing the "qualities" of students.
    I need to estimate the utility from going to high school in period 1. But the problem is that the data set is not separated for two periods.
    Then if I do regression: "logit school .....", then it will mess up both periods.

    How can I estimate each period separately?

    If any one has an idea, plz kindly let me know. Thanks a lot!


  • #2
    I think you want -logit school … if period == 1- and then -logist school … if period == 2-. That will give you separate estimations in each period. Whether that's a wise thing to do, as opposed to using an interaction of your predictor(s) with period, is a different question.

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    • #3
      Thanks Schechter a lot. It works!

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