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From |
"Rafael Bradley" <r.bradley@quanticle.com> |

To |
<statalist@hsphsun2.harvard.edu> |

Subject |
st: RE: Multiple responses on plot level data |

Date |
Thu, 21 Apr 2005 13:57:52 -0700 |

Ronnie, Have you consider estimating the relationship in the context of a production/profit function? You would need some measure of output in your dataset, and unit cost/price information in order to do this. I recommend this approach, because ultimately it is in the growers best interest to select the technology that he/she expects will give the best crop yield for their effort(cost). This observation implies that the choice of technology is not independent of the expected returns for use of the technology, or the mix of technologies. (I am ignoring some issues around the access to technology, and the priors the growers hold around the use of each technology both of which are not inconsiderable issues in many markets around the world.) Essentially, if you estimate the relationship with the technology indicator on the left-side of the equation you are implicitly inverting the profit function to get a set of factor demand equations in latent form. If I were pursuing this analysis, I would not go much further than your proposed tabular analysis unless I had unit cost and yield data to put on the right-side of the equation. I would also set the analysis up as a system of simultaneous logit equations with unit costs, yields, other independent variables, and the dummy variables for the other technology choices on the right-hand side. Obviously, this is not a trivial estimation exercise but it is an interesting problem. For simplicity you could ignore the simultaneity issues in the system and then you have a straightforward set of single equation logit estimates for the use of each technology, each of which represent a latent form of the factor demand for that technology, conditional on the other technologies, unit costs, expected yields, and other regressors. Best Regards, Rafael Bradley (Tel) 602-296-4135 (Fax) 602-926-2560 (Mob) 602-793-8135 www.quanticle.com -----Original Message----- From: owner-statalist@hsphsun2.harvard.edu [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Ronnie Babigumira Sent: Thursday, April 21, 2005 6:42 AM To: statalist@hsphsun2.harvard.edu Subject: st: Multiple responses on plot level data Dear List (I hope the subject line reflects what I intend to present as my problem), Something has been slowly eating away at me and at this point I have decided to seek help from the list. I have plot level data on use of soil conservation measures and would like to construct a "single" dependent variable for each household for use in a multinomial logit. The data look something like this hhd_id plnum fert man fanyaju 1001 1 0 1 0 1001 2 0 1 1 1001 3 1 0 1 1002 1 0 0 0 1002 2 1 1 1 1003 1 1 0 0 Where hhd_id: Household id plnum: Plot number (a household may have more than one plot) And fert, man and fanyaju are 3 possible soil conservation measures a household may undertake (it is possible that more than one measure can be applied to a plot) My question is how do I go about with constructing a single dependent variable for use in a multinomial logit in this case (and would this be correct). I have considered the simplest case where I construct a simple dummy for each plot indicating whether or not a household used at least one of the measures however, I feel that it would be more interesting if I could say something on the determinants for the use of the different measures Many thanks Ronnie * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/ * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**References**:**st: Multiple responses on plot level data***From:*"Ronnie Babigumira" <ronnie.babigumira@umb.no>

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