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Re: st: two-step hierarchical model


From   Alfonso Sanchez-Penalver <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: st: two-step hierarchical model
Date   Mon, 4 Nov 2013 06:33:48 -0500

Hi Amilcar,

You mention that in the first step you use a multinomial logit model, and yet the response variable you mention, whether a retired person in a given country/year supports lower spending or not sounds binomial to me.

I am also confused as to why you want to set this up as a hierarchical two-step model. In the first step you are estimating what affects the probability of the person supporting lower spending already, so all you need is to include the two variables you mention as explanatory variables, and use the -margins- command after to predict the probabilities effects of those two variables.

I may have missed something in your explanation, so I apologize if I did. Please let me know if I am.

Alfonso Sanchez-Penalver

> On Nov 3, 2013, at 4:15 PM, Amilcar Manuel Reis Moreira <[email protected]> wrote:
> 
> Dear all, 
> 
> I am using a two-step hierarchical model to look at the factors that influence the likelihood of retired persons supporting cuts to spending on unemployment benefits. I have a database that includes data for 20 nations, in two different points in time: 1996 and 2006.  
> 
> In the first step, I use a multinomial logistic model to estimate the predicted probability  that retired persons support cutting expenditure on unemployment benefits, in each country/year. 
> 
> My aim is , in the second step, to estimate the impact of the state of the economy (measured by the unemployment rate) and the design of unemployment benefits system (assistance vs. insurance based and generosity on the predicted probability  that retired persons support cutting expenditure on unemployment benefits, in each country/year. Given the limitations of my database, what would be the best method to estimate this?
> 
> I thank you in advance for all the help you can provide.
> 
> All the best,
> 
> Amilcar Moreira  
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