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Re: st: regress


From   Yuval Arbel <[email protected]>
To   statalist <[email protected]>
Subject   Re: st: regress
Date   Tue, 27 Aug 2013 09:49:25 -0700

As an Economist,  I have to say this analysis looks flawed to me. The
reason is that both inputs and output are endogenous variables in
Economic models. I advise Mohammed to do some reading both in
theoretical economic textbooks (e.g., Hal Varian - Microeconomic
Analysis) and econometric textbook. What Mohammed probably needs is a
simultaneous-equation model

On Tue, Aug 27, 2013 at 10:23 AM, Richard Williams
<[email protected]> wrote:
> This seems to be more of a substantive question for economics than it does a
> statistics or Stata question. But if I thought the sign for a coefficient
> seemed odd, I would (a) make sure all my coding is ok, and (b) check the
> bivariate correlations. If the bivariate correlation was positive and the
> regression coefficient was negative, I would start thinking about some sort
> of suppressor effect. Maybe greater amounts of labor indicate lower levels
> of efficiency, at least once other variables are taken into account. But do
> some reading in economics or get the opinion of someone in the field.
>
>
> At 10:32 AM 8/27/2013, Rezgar Mohammed wrote:
>>
>> Hello,
>> I am a beginner in Econ. I would like to test the effect of some
>> factors on the production of specific output using the Cobb-Douglass
>> production function. I would like to know if you have any concerns
>> about the results.
>> Y represents output, x1 labor, x2 fertilizer, x3 land, x4 seed and x5
>> is capital. I wonder why the x1 coefficient is negative for example.
>>
>>
>> reg lny lnx1 lnx2 lnx3 lnx4 lnx5
>>
>>       Source |       SS       df       MS              Number of obs =
>> 160
>> -------------+------------------------------           F(  5,   154)
>> =22942.46
>>        Model |  1.13880167     5  .227760334           Prob > F      =
>> 0.0000
>>     Residual |  .001528829   154  9.9275e-06           R-squared     =
>> 0.9987
>> -------------+------------------------------           Adj R-squared =
>> 0.9986
>>        Total |   1.1403305   159   .00717189           Root MSE      =
>> .00315
>>
>>
>> ------------------------------------------------------------------------------
>>          lny |      Coef.   Std. Err.      t    P>|t|     [95% Conf.
>> Interval]
>>
>> -------------+----------------------------------------------------------------
>>         lnx1 |  -.0398971   .0008289   -48.13   0.000    -.0415346
>> -.0382596
>>         lnx2 |   1.063405   .0033848   314.17   0.000     1.056719
>> 1.070092
>>         lnx3 |  -.0008994   .0005395    -1.67   0.098    -.0019652
>> .0001664
>>         lnx4 |   .0023421   .0024396     0.96   0.339    -.0024772
>> .0071615
>>         lnx5 |   .0025708    .000884     2.91   0.004     .0008245
>> .0043171
>>        _cons |  -.3304083   .0228141   -14.48   0.000    -.3754774
>> -.2853393
>>
>> ------------------------------------------------------------------------------
>>
>> I tested for heteroskedasticity and auto-correlation but nothing changes.
>>
>>
>> Thank you.
>>
>>
>> *
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>
>
> -------------------------------------------
> Richard Williams, Notre Dame Dept of Sociology
> OFFICE: (574)631-6668, (574)631-6463
> HOME:   (574)289-5227
> EMAIL:  [email protected]
> WWW:    http://www.nd.edu/~rwilliam
>
>
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-- 
Dr. Yuval Arbel
School of Business
Carmel Academic Center
4 Shaar Palmer Street,
Haifa 33031, Israel
e-mail1: [email protected]
e-mail2: [email protected]
You can access my latest paper on SSRN at:  http://ssrn.com/abstract=2263398
You can access previous papers on SSRN at: http://ssrn.com/author=1313670
*
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