Dear statalisters,
May I have a question regarding using dependent variable as a denominator of one independent variable? I have searched your site but could not find a clear answer. To be specific, this is my model:
Revenue: dependent variable
Export ratio= Export / Revenue: independent variable
I treat "export ratio" as an endogenous variable and expect it to have a positive effect on "revenue".
Could you please tell me if I will be criticized to make my model like this?
I have cross-section data. Can I just use normal endogenous model to run or is there any better model?
Thank you very much for your precious time.
Yours sincerely
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