Hi STATALISTERS,
Nice ThanksGiving ! I am student of Master degree at the Unversity of Geneva, I
am coimputing the estimation of this 2 eq. The first is a loglog cost function
of a panel of diamonds mines with 3 variables, using a panel data.
How can I compute the Fair estimator in STATA ?
Fair, Ray C. "The estimation of Simultaneous Equation Models with Lagged
Endogenous Variables and the First Order Serially Correlated Errors",
Econometrica 38 (May 1970 ) 507-16.
Empirical strategy :
1. estimate (1) by fixed effects 2sls IV
2. estimate this system by 3sls, however is a nonlinear and a presence of
lagged
endogenous variable said to me is a fair estimator.
(1) ln C(t)= beta_{q}ln q(t) + beta_{R}ln R(t)+ beta_{pm} ln pm()
(2) (P(t) - e^{rt} P_{0}) - beta_{q}left[ C_{t}/q_{t}- e^{rt} C_{0}/q_{0}
right]
= beta_{R} [ (1+r)^t C_{0}/R_{0}+ (1+r)^(t-1) C_{1}/R_{1} + ... + (1+r)
C_{t-1}/R_{t-1} + C_{t}/R_{t} ]
Thank you for your time and help.
Gustavo Revollo
cite universitaire
46 av. miremont
1206 geneve
switzerland
[email protected]
[email protected]
00 41 78 680 47 45
web page : http://home.etu.unige.ch/~revollo7/
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