HELP! Panel Estimation
Posted: Mon Dec 07, 2015 11:29 am
For my class I am finishing a project estimating homicide rates for every state using 3 variables (unemployment, gdp, and gini index)
the model looks like this d(state) = c dlog(stategdp) d(stategini) d(stateunemployment) state(-1) log(stategdp(-1)) stategini(-1) stateunemployment(-1)
however to account for the impact multiplier i was instructed to use this form of the equation:
d(alabama) = c(1) + c(2) *dlog(alabamagdp) + c(3) *d(alabamagini) + c(4) *d(alabamaunemploy) + c(5) *(alabama(-1) + c(6) *log(alabamagdp(-1)) + c(7) *alabamagini(-1) + c(8) *alabamaunemploy(-1))
using alabama for example
however, when trying to use pool to generate a panel of all 50 states when I use the second model accounting for the impact multiplier it generates ' c(5) *(alabama(-1) + c(6) *log(alabamagdp(-1)) + c(7) *alabamagini(-1) + c(8) *alabamaunemploy(-1)) ' all as one variable instead of individually as when I run the equation is a regular regression command.
How can I fix this so that my results are reliable and account for the impact multiplier c(5) ?
thanks
the model looks like this d(state) = c dlog(stategdp) d(stategini) d(stateunemployment) state(-1) log(stategdp(-1)) stategini(-1) stateunemployment(-1)
however to account for the impact multiplier i was instructed to use this form of the equation:
d(alabama) = c(1) + c(2) *dlog(alabamagdp) + c(3) *d(alabamagini) + c(4) *d(alabamaunemploy) + c(5) *(alabama(-1) + c(6) *log(alabamagdp(-1)) + c(7) *alabamagini(-1) + c(8) *alabamaunemploy(-1))
using alabama for example
however, when trying to use pool to generate a panel of all 50 states when I use the second model accounting for the impact multiplier it generates ' c(5) *(alabama(-1) + c(6) *log(alabamagdp(-1)) + c(7) *alabamagini(-1) + c(8) *alabamaunemploy(-1)) ' all as one variable instead of individually as when I run the equation is a regular regression command.
How can I fix this so that my results are reliable and account for the impact multiplier c(5) ?
thanks