Asking for solutions to a high standard error in contingent valuation study using double bound model in Stata

[Mazaya Dhiya]

I am doing a study on Willingness to Pay for Renewable Electricity using a Double-Bound Contingent Valuation model and analysed it in stata using the guide provided by Alejandro Lopez-Feldman (2012). However, the results showed a high standard error as follows:

doubleb bid1 bid2 wtp1 wtp2 ngo

initial: log likelihood = -<inf> (could not be evaluated)
feasible: log likelihood = -13779.517
rescale: log likelihood = -892.07509
rescale eq: log likelihood = -710.1219
Iteration 0: log likelihood = -710.1219
Iteration 1: log likelihood = -699.37483
Iteration 2: log likelihood = -699.01164
Iteration 3: log likelihood = -699.01147
Iteration 4: log likelihood = -699.01147

Number of obs = 400
Wald chi2(1) = 5.62
Log likelihood = -699.01147 Prob > chi2 = 0.0178

------------------------------------------------------------------------------
| Coefficient Std. err. z P>|z| [95% conf. interval]
-------------+----------------------------------------------------------------
Beta |
ngo | 141.8417 59.83623 2.37 0.018 24.56488 259.1186
_cons | 2395.434 41.96212 57.09 0.000 2313.19 2477.678
-------------+----------------------------------------------------------------
Sigma |
_cons | 548.7313 26.17672 20.96 0.000 497.4259 600.0368
------------------------------------------------------------------------------

First-Bid Variable: bid1
Second-Bid Variable: bid2
First-Response Dummy Variable: wtp1
Second-Response Dummy Variable: wtp2

May I know what does this entail (because the p value is significant)? Will it be a problem when I write the discussion and interpretation part of my study?

[Andrew Musau]

The magnitude of the standard errors should be viewed relative to the size of the coefficients. In that regard, your standard errors do not appear inflated to me. Unless you have some specific concern, e.g., the coefficient estimates appear to be out of the range of those found in previous studies, I think you should just proceed as usual.