Dear all,
we want to estimate a nested logit model where the variables are individual
specific (such as in mlogit and NOT clogit).
We are uncertain about the definition and construction of the explainatory
variables for the "lower" level. We have two decision stages as in the
restaurant example in the manual. The first stage is no problem - the "how
to do" is written in that manual. However, in the restaurant example there
are individual specific variables for the "upper" level but not for the
"lower" level.
Here are our questions:
Do we have to generate the individual specific variables as in the upper
stage? We have in total 6 various outcomes in two nests (two and four), will
we have then 5 variables which take a value and zero otherwise (as in the
manual-example for the kids or income)? In that case we are uncertain about
the interpretation because then the reference category might be in another
nest than the variable in focus.
Is there someone who might help us?! With many thanks,
Silvia and Stephan
*
* 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/
