<Situation>
1. I have a data set consists of 21 countries.
2. I ran the multinomial logit regression using only the first 20 countries.
<What I want to check>
1. my model specification is valid for the 21th country (that seems to be heterogenous)
<What I have done>
Let y is the "nominal" dependent variable having values 1, 2, and 3
Let dummies be dy1 = 1 if y = 1, 0 if y = 2 or 3 /// dy2 = 1 if y =2, 0 if y = 1 or 3 /// dy3 = 1 if y = 3, 0 if y = 1 or 2
country_id indicates the identifier of countreis
Let x1 x2 x3 are the regressors
Code:
mlogit y x1 x2 x3 if 1<=country_id & country_id <=20 keep if country_id == 21 predict pr* , pr summarize pr* d1 d2 d3, sep(3)
Code:
Variable | Obs Mean Std. Dev. Min Max -------------+-------------------------------------------------------------------------- pr1 | 5,808 .1188443 .0433502 .020736 .2662867 pr2 | 5,808 .5227578 .0685922 .3551487 .7098638 pr3 | 5,808 .3583978 .0774935 .2025161 .5655785 -------------+-------------------------------------------------------------------------- dy1 | 5,808 .2458678 .4306376 0 1 dy2 | 5,808 .6194904 .485554 0 1 dy3 | 5,808 .1346419 .34137 0 1
In this case, can I say that the model specification is not appropriate fort the 21th country?
Thank you for your time spending to read this question.
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