Re: st: -levpet- with additional state variables - is it possible?

["Brian P. Poi" <bpoi@stata.com>]

On Wed, 26 Mar 2008, Matej Drev wrote:

> Dear Statalist users,
>
> I am trying to estimate a production function with two state variables - 
> capital stock and r&d stock - using the -levpet- command. However, it 
> seems that the Stata routine only allows for specification of one such 
> variable - capital stock. Is there a way to estimate this production 
> function in Stata using -levpet-?
>
> I couldn't find help for this online, so I would appreciate any 
> clarification on this.
Matej,

The -levpet- command published in the Stata Journal (Petrin, Poi, & 
Levinsohn, 2004) only accepts one state variable.  Modifying the estimator 
to accept multiple state variables would entail a huge amount of work.

Forthcoming in the Stata Journal is an article (Yasar, Raciborski, & Poi) 
that introduces the command -opreg- to fit a production function using the 
Olley and Pakes (1996) technique.  -opreg- allows you to specify two state 
variables.  Contact me privately (bpoi@stata.com) if you'd like to get the 
command files.


   -- Brian Poi
   -- bpoi@stata.com


References
----------

Olley, G. S. & A. Pakes. 1996. The dynamics of productivity in the
   telecommunications equipment industry. Econometrica, 64(6): 1263-1297.

Petrin, A., B. P. Poi, and J. Levinsohn.  2004. Production function
   estimation in Stata using inputs to control for unobservables.
   Stata Journal 4(2): 113-123.

Yasar, M., Raciborski, R., & Poi, B. 2008. Production Function Estimation
   in Stata Using the Olley and Pakes Method.  Stata Journal, forthcoming.

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