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  • Mixed -Logit Model Alternative-Specific Regressor Variation

    Hi all, I am trying to estimate Mixed Logit Model using fake insurance choice dataset "use https://www.stata-press.com/data/r18/inschoice" .
    I tried to construct another alternative-specific variable that varies over alternatives but does not vary over cases.
    Then, the estimation omits the new alternative-specific variable due to collinearity. I was wondering why collinearity occurs.

    Code:
    . tabulate insurance var1
    
               |                          var1
    Insurances |      1000       2000       3000       4000       5000 |     Total
    -----------+-------------------------------------------------------+----------
        Health |       250          0          0          0          0 |       250
         HCorp |         0        250          0          0          0 |       250
       SickInc |         0          0        250          0          0 |       250
        MGroup |         0          0          0        250          0 |       250
    MoonHealth |         0          0          0          0        250 |       250
    -----------+-------------------------------------------------------+----------
         Total |       250        250        250        250        250 |     1,250
    Last edited by Juliana Lopex; 28 Apr 2023, 00:24.

  • #2
    Juliana Lopex: Does your model include alternative-specific constants? If yes, var1 is perfectly correlated with those constants: Note that your var1 does not vary within an alternative and only varies between alternatives.

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