Hello Stata Users:
I have a quick question on weighted Least squares: Below is the
following econometric equation:
Q1+Q2 = alpha + [ (Q1/(Q1+Q2))*X1 + (Q2/(Q1+Q2))*X2 ]b + e
Where X1 and X2 are the same explanatory variables, however with
different numerical values. For example, X1 would be the % in one
zone, and X2 is the percent in another zone.
Is there anything wrong w/ this logic?
How about this econometric model:
y1=alpha1+beta1(P)+e
y2= alpha2 +beta2(P)+v
To obtain the aggregate effect one would sum:
y1+y2=(alpha1+alpha2) +(beta1+beta2)P+(e+v)
Is there anything wrong with the above logic?
Tam
Tam
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