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  • Testing preference parameters in choice models

    Dear all,

    I am trying to test parameters between two models of different demographic.
    so my hypothesis is
    h1: beta1= beta 2
    h2: beta1<>beta2

    I estimate both models and note the values of beta1 and beta 2 and the difference between them
    Lets say is x= beta1-beta2

    now the Standard error of (x) is calculated as
    se(x)= sqrt[var(beta1) +var(beta2)- 2 covariance(beta1,beta2)]

    1. var i.e. the variance I find using the variance-covariance matrix but don't see how to use the covariance in this formula.

    2. I was computing this on excel but perhaps there is a quicker way through stata?

    Any help would be appreciated.

    Thank you
    Mar
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