Ordered response model "help"
Posted: Sun Apr 06, 2014 11:29 am
Hi to you all,
I´m working on an assignment where I´m trying to estimate the value of a natural area using a contingent valuation method where I find what people are willing to pay.
So I have collected all my data and done my regression with an ordered response model. But I don’t understand how exactly to use an ordered response model in Eviews. My dependent variable is my WTP (Willingness to pay) where I have 14 categories after what people are willing to pay and my explanatory variable are vectors of 1 and 0 and are income age gender and etc.
when I estimate this I get very strange results which I just don’t understand. How can I tell if the WTP is more for people who have higher wage and after they get older etc. what do I do with these limit points?
And another question, should all my vectors be categorist i.e. in my wage vector should people with wage a monthly wage of 5000 dollars be in group 1 and people with 6000 dollars in group 2.
I´ve been reading about this model for about 3 days now and still don’t have a clue about how to build it up and read the results
I have attached I file with my results. I know that they dont have any significance thats not a proplem right now form me
I´m working on an assignment where I´m trying to estimate the value of a natural area using a contingent valuation method where I find what people are willing to pay.
So I have collected all my data and done my regression with an ordered response model. But I don’t understand how exactly to use an ordered response model in Eviews. My dependent variable is my WTP (Willingness to pay) where I have 14 categories after what people are willing to pay and my explanatory variable are vectors of 1 and 0 and are income age gender and etc.
when I estimate this I get very strange results which I just don’t understand. How can I tell if the WTP is more for people who have higher wage and after they get older etc. what do I do with these limit points?
And another question, should all my vectors be categorist i.e. in my wage vector should people with wage a monthly wage of 5000 dollars be in group 1 and people with 6000 dollars in group 2.
I´ve been reading about this model for about 3 days now and still don’t have a clue about how to build it up and read the results
I have attached I file with my results. I know that they dont have any significance thats not a proplem right now form me