Viktor--
The -glm- command you specified seems a reasonable starting point,
though I would specify -vce(cluster id)- to allow errors to be
correlated within person. You might also explore -nlsur- which could
offer a modest gain in efficiency, and a wider variety of functional
forms to match the specification implied by your theory. Just to be
clear--the people are making one choice (not multiple choices) and you
observe the resulting portfolio allocation, yes? Are the shares
invested in various countries supposed to add to one?
On 8/18/07, Viktor Slavtchev <[email protected]> wrote:
> dear,
> I have followed model.
> People can make (multiple) choices. For example, people can invest their
> money in different countries, whereat multiple investment options are
> possible at the same time.
> Example
>
> id country investment_share interest_rate gender
> 1 Germany .2 .02 0
> 1 US .5 .03 0
> 1 UK .1 .025 0
> 1 France .1 .022 0
> 1 Italy .1 .023 0
> I've just tried followed:
> xi: glm investment_share interest_rate gender i.id, family(binomial)
> link(logit) scale(x2)
>
> Is this an appropriate way to solve the problem?
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