Dear Statalist users,
I have a panel 2000-2008 of some bilateral exports
l estimate the model by hausman-taylor:
xhhtaylor ...
Then I predict
predictnl yhat1=exp(predict(xbu))
Then I change the value of some explanatory variable x but only for
years after 2003:
replace x=c if year>=2004
and predict again
predictnl yhat2=exp(predict(xbu)).
To my surprise, yhat2 is different from yhat1 for 2000-2003 periods.
How should I interpret these results?
My guess is that when I change some value of x in the future, it
changes the whole variance-covariance matrix and this is what drives
the results.
If it is true, does it have any economic interpretation?
Best,
OS
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