AW: st: Nested Logit Model

["Marc Michelsen" <marcmichelsen@t-online.de>]

Anders,

thanks for your comments. 

Of course I have first used -nlogitgen- and -nlogitree- to set up the nested
structure of my panel data. Please see below for more details:

. nlogitgen issuetype = mode(NonIssuer: NoIssue , Issuer: Debt | Equity)
. nlogittree mode issuetype, choice(d)
tree structure specified for the nested logit model

 issuetype   N       mode     N     k  
-----------------------------------------
 NonIssuer 29458 --- NoIssue 29458 21695
 Issuer    58916 --- Debt    29458  6109
                  +- Equity  29458  1654
-----------------------------------------
                      total  88374 29458

k = number of times alternative is chosen
N = number of observations at each level

. nlogit d a || issuetype: StandMBRatio BLeverage OpPerformance Size
RDExpense RDExpenseDummy Tangibility posoutl negoutl, base(NonIssuer) ||
mode:  StandMBRatio BLeverage OpPerformance Size RDExpense RDExpenseDummy
Tangibility posoutl negoutl, base(Debt) case(No) notree nolog

Error Message <variables "StandMBRatio BLeverage OpPerformance Size
RDExpense RDExpenseDummy Tangibility posoutl negoutl " are specified in more
than one equation; this is not allowed>

Does this help to clarify the problem?

Regards
Marc

-----Ursprüngliche Nachricht-----
Von: owner-statalist@hsphsun2.harvard.edu
[mailto:owner-statalist@hsphsun2.harvard.edu] Im Auftrag von Anders
Alexandersson
Gesendet: Donnerstag, 15. Juli 2010 17:30
An: statalist@hsphsun2.harvard.edu
Betreff: Re: st: Nested Logit Model

Marc, try -nlogitgen- and -nlogittree- before running -nlogit-, as in
the helpfile.
Please provide what you typed instead of schematic syntax like
"[explanatory variables]", e.g., what is your "altvar"?

Anders Alexandersson
andersalex@gmail.com

On Thu, Jul 15, 2010 at 10:22 AM, Marc Michelsen
<marcmichelsen@t-online.de> wrote:
> I am trying to run a nested logit model comparable to Huang/Ritter (2009)
> "Testing Theories of Capital Structure and
> Estimating the Speed of Adjustment", p. 253:
> 2-layered Security Issuance Decision: Limbs: NoIssue vs. Issue / Branches
> for "Issue": Debt Issuance vs. Equity Issuance.
>
> Similar to the above mentioned study, I have the same explanatory
variables
> for the first decision layer (Issue vs. NoIssue) and the second layer
(Debt
> vs. Equity). Apparently, this is not valid for Stata as I get the
following
> error message:
> <"variables ".." are specified in more than one equation; this is not
> allowed>
>
> My command looks the following:
> . nlogit d a || issuetype: [explanatory variables], base(NonIssuer) ||
> issuetype2:  [explanatory variables], base(NoIssue) case(No) notree nolog
>
> What is wrong with my model specification/general approach?

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