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Re: Simultaneously estimated nested logit

To: "'Adrienne Kandel'" <Akandel@energy.state.ca.us>, <s-news@lists.biostat.wustl.edu>
Subject: Re: Simultaneously estimated nested logit
From: "Eric Zivot" <ezivot@u.washington.edu>
Date: Wed, 27 Aug 2003 20:54:35 -0700
Importance: Normal
In-reply-to: <sf4ccdf6.094@mail.energy.state.ca.us>
Organization: University of Washington

Ken Train has Gauss code for estimating a nested logit model using full information maximum likelihood on his UC Berkeley webpage (http://elsa.berkeley.edu/~train/ps.html). I believe the nested logit code is in problem set #3. This should not be too hard to program in S-PLUS. As part of a discrete choice estimation library under development at Insightful, there is a nested logit routine based on full information maximum likelihood that has good numerical properties (it is similar to but more general than Ken Train’s Gauss code) in which the estimation is done using nlminb. In general, nlminb will handle most problems that can be estimated using the maxlik routine in GAUSS. For more estimation options, you might also look at the function optmin available in the MASS library (which come with S-PLUS) provided by Venables and Ripley.

 

BTW, if you are interested in probabilistic discrete choice model, I highly recommend doing Ken Train distance learning course on discrete choice models with simulation (and reading his new book discrete choice models with simulation). The web page for this is

 

 

http://elsa.berkeley.edu/~train/distant.html

 

ez

 

 

-----Original Message-----
From: s-news-owner@lists.biostat.wustl.edu [mailto:s-news-owner@lists.biostat.wustl.edu] On Behalf Of Adrienne Kandel
Sent:
Wednesday, August 27, 2003 2:28 PM
To: s-news@lists.biostat.wustl.edu
Subject: [S] Simultaneously estimated nested logit

 

 I'm learning S+, and I'd like to re-program some work I initially did using another package (Gauss).  One piece of that work requires a three choice nested logit regression (with 2 choices forming one branch and the other choice forming the other branch).

 

1.  Does someone know of an S program that does this estimation simultaneously (not sequentially), with good numerical properties.  I wrote one in Gauss and can translate it into S, but if I can avoid the big learning curve I'll be happy.  (I took the inclusive value as given, and used Gauss's maximum likelihood routine to find the optimum.  I did this as a grid search over inclusive values, getting to finer and finer grid levels as I reached the optimum, so that I ended up with the inclusive value that yielded the max of the max likelihoods, and the corresponding parameters and other model output.)

 

2.  I hear S+ has a maximum likelihood routine with some flexibility to choose solving methods.  Any tips on it? 

 

Thanks.

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