Hi all, any expert in chow test? I've got a question and would appreciate any insight--
This is from the STATA FAQ:
to estimating the separate models
y = a1 + b1*x1 + c1*x2 + u for group == 1
y = a2 + b2*x1 + c2*x2 + u for group == 2
. gen g2 = (group==2)
. gen g2x1 = g2*x1
. gen g2x2 = g2*x2
. regress y x1 x2 g2 g2x1 g2x2
My problem is that I've got lots of control variables on the right hand side(x1,x2....x15). I'm only interested in x1 and I wanna test if the coefficient of x1 is significantly different for the two groups.
