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RE: re:RE: st: FW: comparing xtregar coefficients across models


From   Lopa Chakraborti <[email protected]>
To   "[email protected]" <[email protected]>
Subject   RE: re:RE: st: FW: comparing xtregar coefficients across models
Date   Sat, 26 Feb 2011 10:47:51 -0500

Thanks much, I tried this and it gives me an error message that matrix is not positive definite. please see output below.

thanks much for your advice
Lopa

-----------------------------------------
. reg lseaavglcavfoia04avg2  lagseaavgwqfoia04avg3 lagseaavgflowfoia04avg3 elec food mill paper chem petro rubber leather metal transp secu just rnwhite mhhi carpl manuf popt popu MD PA plantdum*

      Source |       SS       df       MS              Number of obs =     352
-------------+------------------------------           F( 81,   270) =   29.69
       Model |  74.3830789    81  .918309617           Prob > F      =  0.0000
    Residual |  8.35055771   270  .030927992           R-squared     =  0.8991
-------------+------------------------------           Adj R-squared =  0.8688
       Total |  82.7336366   351  .235708367           Root MSE      =  .17586

------------------------------------------------------------------------------
lseaavglca~2 |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
lagseaavgw~3 |   .0244351   .0055078     4.44   0.000     .0135914    .0352788
lagseaavgf~3 |   .0002222    .000091     2.44   0.015     .0000431    .0004013
        elec |   .2129178      .1553     1.37   0.172    -.0928351    .5186708
        food |   .6418354   .1638784     3.92   0.000     .3191935    .9644773
        mill |  -.5982965   .1463387    -4.09   0.000    -.8864065   -.3101865
       paper |   1.392938   .1419705     9.81   0.000     1.113428    1.672448
        chem |   .3565779   .1049817     3.40   0.001      .149891    .5632648
       petro |   1.065165   .1819125     5.86   0.000     .7070174    1.423312
      rubber |   .7635493   .1233743     6.19   0.000     .5206514    1.006447
     leather |   1.137499   .1207305     9.42   0.000     .8998057    1.375191
       metal |  (dropped)
      transp |   .9737299   .1848082     5.27   0.000     .6098817    1.337578
        secu |   -.544829   .1026343    -5.31   0.000    -.7468943   -.3427637
        just |   .2042363   .1289666     1.58   0.114    -.0496717    .4581443
     rnwhite |  -.0101692    .002526    -4.03   0.000    -.0151425   -.0051959
        mhhi |  -.0352105   .0043875    -8.03   0.000    -.0438486   -.0265724
       carpl |   .0311664   .0082184     3.79   0.000      .014986    .0473467
       manuf |   .0053568   .0032454     1.65   0.100    -.0010327    .0117463
        popt |  -.0141587   .0036555    -3.87   0.000    -.0213557   -.0069618
        popu |   .0041006   .0012129     3.38   0.001     .0017127    .0064885
          MD |   .4135289    .090566     4.57   0.000     .2352235    .5918342
          PA |  -.2549483   .1045019    -2.44   0.015    -.4606904   -.0492061
   plantdum1 |  (dropped)
   plantdum2 |  (dropped)
   plantdum3 |   .7691394   .2183276     3.52   0.001     .3392984     1.19898
   plantdum4 |   .3207876   .1874215     1.71   0.088    -.0482059     .689781
   plantdum5 |  -.1197976    .145346    -0.82   0.411    -.4059533    .1663581
   plantdum6 |   .3316406   .1206477     2.75   0.006     .0941107    .5691704
   plantdum7 |  -.1728694   .1349296    -1.28   0.201    -.4385174    .0927785
   plantdum8 |   .2693357   .1272146     2.12   0.035      .018877    .5197944
   plantdum9 |   .4687905    .134595     3.48   0.001     .2038014    .7337797
  plantdum10 |   .1082983   .1236713     0.88   0.382    -.1351844     .351781
  plantdum11 |   .4401668    .111727     3.94   0.000        .2202    .6601336
  plantdum12 |  (dropped)
  plantdum13 |   .9341648   .1372759     6.81   0.000     .6638976    1.204432
  plantdum14 |  (dropped)
  plantdum15 |  -.2610163   .1134563    -2.30   0.022    -.4843878   -.0376448
  plantdum16 |  -.3005526   .0995102    -3.02   0.003    -.4964672    -.104638
  plantdum17 |   1.127408   .1719219     6.56   0.000     .7889304    1.465886
  plantdum18 |   .1197784   .1387065     0.86   0.389    -.1533054    .3928622
  plantdum19 |   .6954829   .1493805     4.66   0.000     .4013843    .9895815
  plantdum20 |  -.2337304   .1291041    -1.81   0.071    -.4879091    .0204483
  plantdum21 |  -.6068917   .1116414    -5.44   0.000    -.8266902   -.3870933
  plantdum22 |   .8740887   .1400511     6.24   0.000     .5983576     1.14982
  plantdum23 |  (dropped)
  plantdum24 |  (dropped)
  plantdum25 |   .2823287   .1466988     1.92   0.055    -.0064902    .5711476
  plantdum26 |  (dropped)
  plantdum27 |  (dropped)
  plantdum28 |  (dropped)
  plantdum29 |  (dropped)
  plantdum30 |  -.4708984   .1497293    -3.14   0.002    -.7656837   -.1761131
  plantdum31 |   -.438786   .1401342    -3.13   0.002    -.7146806   -.1628914
  plantdum32 |  (dropped)
  plantdum33 |  (dropped)
  plantdum34 |  (dropped)
  plantdum35 |  (dropped)
  plantdum36 |   1.677517   .1999398     8.39   0.000     1.283877    2.071156
  plantdum37 |  -1.120505   .2064769    -5.43   0.000    -1.527015   -.7139958
  plantdum38 |  (dropped)
  plantdum39 |  (dropped)
  plantdum40 |  (dropped)
  plantdum41 |  (dropped)
  plantdum42 |   .3959486   .2031939     1.95   0.052    -.0040973    .7959946
  plantdum43 |  (dropped)
  plantdum44 |   .3073807   .1520871     2.02   0.044     .0079534    .6068081
  plantdum45 |  (dropped)
  plantdum46 |   1.059297   .2276764     4.65   0.000     .6110499    1.507543
  plantdum47 |  (dropped)
  plantdum48 |  (dropped)
  plantdum49 |  (dropped)
  plantdum50 |  (dropped)
  plantdum51 |  (dropped)
  plantdum52 |  (dropped)
  plantdum53 |  (dropped)
  plantdum54 |  (dropped)
  plantdum55 |  (dropped)
  plantdum56 |  (dropped)
  plantdum57 |  -1.485141   .1771269    -8.38   0.000    -1.833867   -1.136416
  plantdum58 |  (dropped)
  plantdum59 |  (dropped)
  plantdum60 |   .0049676   .1078474     0.05   0.963    -.2073612    .2172965
  plantdum61 |  (dropped)
  plantdum62 |   .6261735   .1573913     3.98   0.000     .3163033    .9360437
  plantdum63 |  (dropped)
  plantdum64 |  (dropped)
  plantdum65 |   .3145512   .1245209     2.53   0.012     .0693957    .5597066
  plantdum66 |   .4343607   .1684908     2.58   0.010     .1026379    .7660836
  plantdum67 |   .3972986   .1205552     3.30   0.001     .1599508    .6346463
  plantdum68 |   .0847565   .1186456     0.71   0.476    -.1488317    .3183447
  plantdum69 |   .0080616   .1749662     0.05   0.963      -.33641    .3525331
  plantdum70 |  -.0560417   .1342002    -0.42   0.677    -.3202535    .2081701
  plantdum71 |  -.3220523   .1773703    -1.82   0.071     -.671257    .0271525
  plantdum72 |   .3486675    .115761     3.01   0.003     .1207586    .5765764
  plantdum73 |  -.9518247    .103831    -9.17   0.000    -1.156246   -.7474033
  plantdum74 |   .2476029   .1395782     1.77   0.077     -.027197    .5224029
  plantdum75 |    .836097   .1319316     6.34   0.000     .5763515    1.095843
  plantdum76 |  (dropped)
  plantdum77 |  -1.273264   .1531924    -8.31   0.000    -1.574868   -.9716609
  plantdum78 |  -.8138779   .1587562    -5.13   0.000    -1.126435   -.5013204
  plantdum79 |  (dropped)
  plantdum80 |  (dropped)
  plantdum81 |   .4791252   .1361514     3.52   0.001     .2110719    .7471785
  plantdum82 |   .3582504   .1440961     2.49   0.014     .0745556    .6419452
  plantdum83 |  (dropped)
  plantdum84 |   .1810186    .125488     1.44   0.150    -.0660407     .428078
  plantdum85 |    .255044   .0995309     2.56   0.011     .0590885    .4509994
  plantdum86 |   .5843352   .1984682     2.94   0.004     .1935931    .9750773
  plantdum87 |   .2002266    .182147     1.10   0.273    -.1583824    .5588357
  plantdum88 |   .4258173   .1348069     3.16   0.002      .160411    .6912236
  plantdum89 |  -.4737271    .127686    -3.71   0.000     -.725114   -.2223403
  plantdum90 |   .3987519   .1199636     3.32   0.001     .1625689    .6349349
  plantdum91 |   .3239533   .1312942     2.47   0.014     .0654627     .582444
  plantdum92 |   .0377316   .1267357     0.30   0.766    -.2117843    .2872475
  plantdum93 |   .3878477   .1412138     2.75   0.006     .1098275    .6658678
  plantdum94 |   -.310689    .117598    -2.64   0.009    -.5422147   -.0791634
  plantdum95 |   .0552001   .1330037     0.42   0.678    -.2066562    .3170563
  plantdum96 |   1.309711   .1786096     7.33   0.000     .9580666    1.661356
  plantdum97 |   .3827637   .1555005     2.46   0.014     .0766161    .6889113
  plantdum98 |   .6087197   .1418621     4.29   0.000     .3294231    .8880163
  plantdum99 |  (dropped)
 plantdum100 |  -.2926673   .1147111    -2.55   0.011    -.5185092   -.0668253
       _cons |   3.337349   .2611877    12.78   0.000     2.823125    3.851572
------------------------------------------------------------------------------

. est sto  pastcycleseaavg

. reg lseaavglcavfoia04avg2   pastyearseaavgwq lagseaavgflowfoia04avg3 elec food mill paper chem petro rubber leather metal transp secu just rnwhite mhhi carpl manuf popt popu MD PA plantdum*

      Source |       SS       df       MS              Number of obs =     346
-------------+------------------------------           F( 80,   265) =   28.91
       Model |  70.5846732    80  .882308415           Prob > F      =  0.0000
    Residual |  8.08787772   265  .030520293           R-squared     =  0.8972
-------------+------------------------------           Adj R-squared =  0.8662
       Total |  78.6725509   345   .22803638           Root MSE      =   .1747

------------------------------------------------------------------------------
lseaavglca~2 |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
pastyearse~q |   .0269644   .0052941     5.09   0.000     .0165406    .0373882
lagseaavgf~3 |   .0002167   .0000903     2.40   0.017     .0000388    .0003945
        elec |   .2291311   .1543947     1.48   0.139    -.0748654    .5331276
        food |   .6554963   .1628898     4.02   0.000     .3347734    .9762193
        mill |  -.5985282   .1453619    -4.12   0.000    -.8847395    -.312317
       paper |   1.396273   .1409364     9.91   0.000     1.118775    1.673771
        chem |   .3446018   .1043396     3.30   0.001     .1391618    .5500418
       petro |    1.46296   .1356102    10.79   0.000      1.19595    1.729971
      rubber |   .7579646   .1225678     6.18   0.000     .5166341    .9992952
     leather |   1.125222   .1200233     9.38   0.000     .8889018    1.361543
       metal |  -.0049207   .1071482    -0.05   0.963    -.2158908    .2060494
      transp |  (dropped)
        secu |   .4065807   .1260881     3.22   0.001     .1583187    .6548427
        just |   .1975654   .1281164     1.54   0.124    -.0546901     .449821
     rnwhite |  -.0104925   .0025118    -4.18   0.000    -.0154382   -.0055468
        mhhi |  -.0357134   .0043545    -8.20   0.000    -.0442871   -.0271396
       carpl |    .031048   .0081612     3.80   0.000      .014979    .0471171
       manuf |    .005316    .003224     1.65   0.100    -.0010319    .0116638
        popt |   -.014479   .0036334    -3.98   0.000    -.0216331   -.0073249
        popu |   .0042528   .0012065     3.53   0.000     .0018773    .0066282
          MD |   .4075256   .0899222     4.53   0.000     .2304726    .5845785
          PA |  -.2626332   .1038091    -2.53   0.012    -.4670287   -.0582377
   plantdum1 |  (dropped)
   plantdum2 |  (dropped)
   plantdum3 |   .7547777   .2169271     3.48   0.001     .3276577    1.181898
   plantdum4 |   .3212286   .1861813     1.73   0.086    -.0453543    .6878114
   plantdum5 |  -.1271638   .1443408    -0.88   0.379    -.4113646    .1570369
   plantdum6 |   .3403982   .1197871     2.84   0.005     .1045426    .5762538
   plantdum7 |  -.1881844   .1341801    -1.40   0.162    -.4523791    .0760103
   plantdum8 |   .2765308   .1264072     2.19   0.030     .0276406     .525421
   plantdum9 |   .6244376    .133818     4.67   0.000     .3609558    .8879193
  plantdum10 |   .1104249   .1228177     0.90   0.369    -.1313979    .3522476
  plantdum11 |   .4486392   .1109964     4.04   0.000     .2300921    .6671863
  plantdum12 |  -.9399541   .1363693    -6.89   0.000    -1.208459   -.6714489
  plantdum13 |  (dropped)
  plantdum14 |  (dropped)
  plantdum15 |  -.2710499   .1127303    -2.40   0.017    -.4930108   -.0490889
  plantdum16 |  -.3014505   .0988424    -3.05   0.003    -.4960669   -.1068341
  plantdum17 |   1.137629   .1706129     6.67   0.000     .8016999    1.473559
  plantdum18 |   .1402687   .1380189     1.02   0.310    -.1314844    .4120218
  plantdum19 |   .7027639   .1482823     4.74   0.000     .4108025    .9947252
  plantdum20 |  -.2282995   .1282681    -1.78   0.076    -.4808539    .0242548
  plantdum21 |  -.6172346    .110944    -5.56   0.000    -.8356784   -.3987907
  plantdum22 |   .8857652   .1391707     6.36   0.000     .6117442    1.159786
  plantdum23 |  (dropped)
  plantdum24 |  (dropped)
  plantdum25 |   .2801356   .1456759     1.92   0.056    -.0066939     .566965
  plantdum26 |  (dropped)
  plantdum27 |  (dropped)
  plantdum28 |  (dropped)
  plantdum29 |  (dropped)
  plantdum30 |  -.4781219   .1486349    -3.22   0.001    -.7707776   -.1854662
  plantdum31 |   -.411771   .1386352    -2.97   0.003    -.6847377   -.1388044
  plantdum32 |  (dropped)
  plantdum33 |  (dropped)
  plantdum34 |  (dropped)
  plantdum35 |  (dropped)
  plantdum36 |   1.680021   .1984655     8.47   0.000     1.289251    2.070791
  plantdum37 |  (dropped)
  plantdum38 |  (dropped)
  plantdum39 |   .9802748   .1835777     5.34   0.000     .6188184    1.341731
  plantdum40 |  (dropped)
  plantdum41 |  -.3939802   .2017067    -1.95   0.052    -.7911319    .0031715
  plantdum42 |  (dropped)
  plantdum43 |  (dropped)
  plantdum44 |   .3051018   .1509454     2.02   0.044      .007897    .6023066
  plantdum45 |  (dropped)
  plantdum46 |   1.082839   .2263698     4.78   0.000     .6371268    1.528551
  plantdum47 |  (dropped)
  plantdum48 |  (dropped)
  plantdum49 |  (dropped)
  plantdum50 |  (dropped)
  plantdum51 |  (dropped)
  plantdum52 |  (dropped)
  plantdum53 |  (dropped)
  plantdum54 |  (dropped)
  plantdum55 |  (dropped)
  plantdum56 |  (dropped)
  plantdum57 |  -1.489521   .1759472    -8.47   0.000    -1.835954   -1.143089
  plantdum58 |  (dropped)
  plantdum59 |  (dropped)
  plantdum60 |  (dropped)
  plantdum61 |  (dropped)
  plantdum62 |   .6175411   .1563882     3.95   0.000     .3096196    .9254626
  plantdum63 |  (dropped)
  plantdum64 |  (dropped)
  plantdum65 |   .3256151   .1236991     2.63   0.009      .082057    .5691732
  plantdum66 |   .4430517    .167361     2.65   0.009     .1135252    .7725781
  plantdum67 |   .4104908   .1198253     3.43   0.001     .1745601    .6464215
  plantdum68 |    .082181   .1178579     0.70   0.486     -.149876    .3142379
  plantdum69 |  -.0220907   .1741656    -0.13   0.899    -.3650151    .3208338
  plantdum70 |    -.06986   .1333793    -0.52   0.601     -.332478    .1927581
  plantdum71 |  -.3387496   .1761595    -1.92   0.056    -.6855999    .0081007
  plantdum72 |   .3469106   .1149969     3.02   0.003     .1204868    .5733344
  plantdum73 |  -.9062246   .1091207    -8.30   0.000    -1.121079   -.6913707
  plantdum74 |   .2367819   .1386847     1.71   0.089    -.0362821     .509846
  plantdum75 |   .8494359   .1311289     6.48   0.000     .5912489    1.107623
  plantdum76 |  (dropped)
  plantdum77 |  -1.285866     .15225    -8.45   0.000     -1.58564   -.9860927
  plantdum78 |  -.8213171   .1576954    -5.21   0.000    -1.131812   -.5108218
  plantdum79 |  (dropped)
  plantdum80 |  (dropped)
  plantdum81 |    .474962    .135178     3.51   0.001     .2088023    .7411216
  plantdum82 |   .3443877   .1432406     2.40   0.017     .0623531    .6264222
  plantdum83 |  (dropped)
  plantdum84 |   .1847194   .1246186     1.48   0.139    -.0606491    .4300879
  plantdum85 |   .2492722   .0988171     2.52   0.012     .0547056    .4438388
  plantdum86 |   .5855041   .1971038     2.97   0.003     .1974153    .9735929
  plantdum87 |     .20296   .1808852     1.12   0.263     -.153195    .5591149
  plantdum88 |   .4355955   .1339749     3.25   0.001     .1718047    .6993863
  plantdum89 |  -.4653734    .126867    -3.67   0.000     -.715169   -.2155777
  plantdum90 |   .3904466   .1191348     3.28   0.001     .1558754    .6250178
  plantdum91 |    .320945   .1304105     2.46   0.014     .0641723    .5777176
  plantdum92 |   .0291285    .125904     0.23   0.817    -.2187709     .277028
  plantdum93 |   .3820168   .1428712     2.67   0.008     .1007098    .6633239
  plantdum94 |  -.3136678   .1168239    -2.68   0.008    -.5436889   -.0836467
  plantdum95 |   .0405165   .1321002     0.31   0.759    -.2195831     .300616
  plantdum96 |   1.319497    .177426     7.44   0.000     .9701529    1.668841
  plantdum97 |    .372235   .1545219     2.41   0.017     .0679882    .6764819
  plantdum98 |    .597984   .1409842     4.24   0.000     .3203923    .8755758
  plantdum99 |  (dropped)
 plantdum100 |   -.286517   .1139464    -2.51   0.013    -.5108725   -.0621615
       _cons |   3.342083   .2582654    12.94   0.000      2.83357    3.850596
------------------------------------------------------------------------------

. est sto  pastyearseaavg

. suest  pastcycleseaavg pastyearseaavg, cluster(npid)
matrix not positive definite
r(506);


________________________________________
From: [email protected] [[email protected]] On Behalf Of Christopher Baum [[email protected]]
Sent: Saturday, February 26, 2011 10:15 AM
To: [email protected]
Subject: re:RE: st: FW: comparing xtregar coefficients across models

<>
Sorry, forgot to mention that I also reversed the order of running the two models i.e.-

Run model 2.
Save the beta in a scalar as:
. scalar b_pastyearseaavgwq=_b[pastyearseaavgwq]
Run model 1.
Run test as:
. test _b[lagseaavgwqfoia04avg3]=b_pastyearseaavgwq

The test statistic shows that the two coefficients are not significantly different from each other, in both cases. So, can I conclude then that the coefficients are not statistically different?


NO. You cannot test whether two random variables are equal to one another by setting one of them to a fixed value, no matter how you do it.

suest is quite restrictive in terms of what models can be employed (e.g., xtreg does not work either). If you can fit the models with explicit dummies (using i.panelvar regressors), estimate each model with -regress- and then use suest. But the logic of comparing an estimated coefficient to a fixed value does not correspond to testing whether these two estimated coefficients can be distinguished from each other by the data.

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html




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