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st: Convolution method in stata


From   German Muchnik Izon <german@unm.edu>
To   statalist@hsphsun2.harvard.edu
Subject   st: Convolution method in stata
Date   Tue, 19 Aug 2008 08:44:27 -0600

Hi all,

I am currently working on a survey in which participants 
were asked whether they are willing to pay (WTP)  $X for 
either good A or good B. Since good A is inclusive of good 
B, I am trying to run a scope test in which the null 
hypothesis is that the mean WTP distribution of the less 
inclusive good (i.e. good B) is not statistically 
different from the mean WTP distribution of the more 
inclusive good (i.e. good A). I am trying to the test this 
hypothesis by applying the convolution approach in stata 
and see if this difference is significantly difference 
from 0 at a 10% confidence level. I was able to compute 
the 95% confidence intervals for the E(WTP) of each good 
using the wtpcikr command, but I do not know how to run 
the convolution method in stata. I would really appreciate 
if you can help.

Thank you!

German.

-----------------------------
Germán M. Izón
Department of Economics
PhD. Candidate
The University of New Mexico
Ph# (505) 277-1951


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