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Estimating Dynamic multipliers using Control Function Approach

Posted: Mon Oct 02, 2017 9:57 am
by mgbv
Hi,

I am trying to estimate dynamic multipliers (DM) in a NARDL using the control function (CF-NARDL) approach to control for endogeneity in prices for demand and supply. Previously I used 2SLS in a NARDL, and I was able to estimate the DM. However, I cannot estimate the DM in the CF-NARDL, I get the following error:

LNQ_2_0M is not defined in "GRAPH GR_LPE_CF.LINE
LNQ_2_0M -LNQ_3_0M -LNQ_3_2M (-LNQ_3_2M +
BANDWIDTH*LNQ_3_2S) (-LNQ_3_2M - BANDWIDTH
*LNQ_3_2S)".

I have attached the code for the CF-NARDL and the 2SLS-NARDL estimations.

Can you please advise?

Thanks