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High t-ratio(0) for WTP estimates

Ask questions about the results reported after estimation. If the output includes errors, please include your model code if possible.
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tndex
Posts: 1
Joined: 08 Sep 2020, 22:34

High t-ratio(0) for WTP estimates

Post by tndex »

I have estimated two mixed logit models in WTP space. In the first model, beta_cost is fixed while all other parameters are specified as random with normal distributions. The second model is identical to the first except that beta_cost takes on a negative exponential distribution. WTP estimates are nearly identical but the t-ratios for WTP estimates in the second model are very high, ranging from 50 to 350. Both models seem to have converged properly with cc<1. Should I be worried about these high t-ratios (very small standard errors)? Is so, what could be causing the second model to behave this way?
dpalma
Posts: 190
Joined: 24 Apr 2020, 17:54

Re: High t-ratio(0) for WTP estimates

Post by dpalma »

Hi, could you share your model specification? It is difficult to diagnose potential problems without seeing the code.

Thank you
David
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