hi
I want to estimate three equations that are the following:
Sij = ?1j + ?2j Ln Expi + ?3j Ln HSizei + ?4j UnderAge + ?5j Gender +
?6j Age + ?7j Nat + ?8j Edu + ?9j Job + ?10j Loc + ui;
Where S is a share of household consumption = money spent on one
commodity / total expenditures. I want to estimate for three goods:
food, education and health care.
I run SURE and according to the results:
Correlation matrix of residuals:
es1_food es2_medser es4_educ
es1_food 1.0000
es2_medser -0.1720 1.0000
es4_educ -0.0947 -0.0490 1.0000
Breusch-Pagan test of independence: chi2(3) = 2172.570, Pr = 0.0000
Which means that error terms are correlated. I don�t know what I have
to do further� can you give me any advice? or send me an similar
example. Thanks in advance
BR
Irakli
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