This Lab assignment#3 is to use NLOGIT software. For the same dataset (attached), TWO models created using NLOGIT software are needed. Estimate this model using 3SLS. Then, estimate again using seemingly unrelated regression estimation SURE.
The final outcome is a word file (LAB report) and the NLOGIT Code.
There are two types of files in the attachments:
1- Files starting with the name "Assignment#3": are files which explains the needed work to be completed by you.
2- Assignment#2: are files of a previously completed work for a reference only. These files have been completed and you will need to look at them in order to better do the tasks on the new project.
** Please make sure you do assignment#3 not assignment#2.
Try to follow the presentation style used in assignment #2. Also, there are some general comments sent about the work of assignment #2. Similar table for Descriptive summary of variables used in the models and another Table for the final model.
In your write-up please include:
1. The results of your best model specifications.
2. A discussion of the logical process that led you to the selection of your final specification (the theory behind the inclusion of your selected variables). Include t-statistics and justify the signs of your variables. Discuss any specification issues.
3. A brief comparison of 3SLS and SURE results.
The data and everything should be well explained in the files attached. The data is for vehicles' speed passing a road. However, more clarification can be provided in case needed.
*Important Notes:
1- The NLOGIT code most be attached to the word file (appendix) and also sent with the final project as a text file or original NLOGIT project file.
2- New variables can be created from current models in case the modeler think it would improve the modeling results. (For example: X7 is the proportion of passenger cars from the X4 which includes light pickup trucks, that's why in the sample commands it is shown that (1-X7) is the proportion of heavy trucks).
Passenger cars (including light trucks) + Heavy trucks = Traffic Flow