Re: st: Chow test as a solution for testing of equality of coefficients across two separate samples.

[natasha agarwal <agarwana2@googlemail.com>]

Hi there,

>
> First of all you need to include D as a covariate.

the covariate D drops out because am estimating a fixed effect.

> The coeficient of lnvfdi is the effect of lnvfdi in developing
> countries
> The coefficient of lnvfdi*D is the difference in effect of
> lnvfdi in developing and developed countries
> The effect of lnvfdi in developed countries is thus the sum
> of the coefficients of lnvfdi and lnvfdi*D

Can you conclude that the sum is significantly different from zero then?


> See, e.g.:
> http://www.stata.com/statalist/archive/2005-02/msg00779.html
>
> Hope this helps,
> Maarten
>
> --------------------------
> Maarten L. Buis
> Institut fuer Soziologie
> Universitaet Tuebingen
> Wilhelmstrasse 36
> 72074 Tuebingen
> Germany
>
> http://www.maartenbuis.nl
> --------------------------
>
>
>
>
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