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.
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

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