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st: Multinomial logit and sensitivity analysis


From   Frank Talony <[email protected]>
To   [email protected]
Subject   st: Multinomial logit and sensitivity analysis
Date   Sun, 8 Jul 2012 22:05:09 -0400

I am performing a multinomial logit test. The data set does not include the
dependent variable and it had to be generated from the data itself with
some conditions.

First I generate indicator variables id1, id2, id3 based on independent
variable (v1, v2, v3, ...).
For example:
id1=1 if (v1 > 100), 0 otherwise
id2=1 if (v1 < 20 AND v2>10), 0 otherwise
id3=1 if (v3 > 1.4*v2), 0 otherwise

Then the dependent variable is computed from the indicators as follow:
dep1 = 1 if (id1 OR id2)
dep1 = 2 if (id3)
dep1 = 0 otherwise

My logit is specified as:
mlogit dep1 v1 v2 v3 v4 .... vn, level(90)

Is it a valid test to regress v1,v2,v3 on dep1?
Can I perform some test (perhaps sensitivity analysis) to support using
v1,v2,v3 in my results?

The fact is the results is less interesting without v1,v2,v3 but I am not
sure if they are valid inclusions.
Thanks,

Frank
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