[Limdep Nlogit List] Industry Classifications in Random Parameter Model
Cem Payasli
cem.payasli at emu.edu.tr
Thu Mar 23 20:45:43 AEDT 2017
Greetings,
I want to estimate a Random Parameter (NegBin-P) panel count model with
industrial heterogenity effects accounted for by various type of economic
activity classifications such 1) NACE2, 2) ISIC4 , 3) ISB3D and finally
standard Industry classification in the original dataset. Specifically my
Limdep command would look like :
NEGBIN;Lhs=PAT;Rhs=LRD,LRD1,LRD2,LNS,LCAP,RDORD;PANEL;Robust;RPM=NACE2;Fcn =
LCAP(n),LNS(n);Correlated;halton;Pts=25;Model=NBP$
In each round NACE2 will be replaced by ISIC4 and then by ISB3D and finally
Industry categories. These classifications have 212, 32, 39 and 40 records.
I have seen Random parameters example based on Bertscheck and Lechner (1998)
study which defines an innovation binary logit variable as below:
? Random parameters with industry heterogeneity (From Greene's Lab session
slide)
? Examine effect of industry heterogeneity.
Sample ; All $
Logit ; Lhs = IP ; Rhs = One,IMUM,FDIUM,SP,LogSales
; Pds = 5 ; RPM = InvGood, RawMtl
; Halton ; Pts = 15 ; Cor
; Fcn = One(n),IMUM(n),FDIUM(n) ; Marginal
; Parameters $
Create; Bimum = beta_i(firm,2) $
Regress ; Lhs = Bimum ; Rhs = one,InvGood,RawMtl $
Because InvGood and RawMtl (Investment goods and Raw materials) are defined
as dummy variables, their range in RPM specification is restricted to 0 and
1 only.
Since my own RPM predictors are not dummies but factor variables (in Stata
jargon) the only way to incorporate them seems to create dummies via
CREATE;Expand(NACE2)=N1,N2,N3......so on..
However, that would be formidable number of dummies for some
classifications.
Is there any other way around ?
Thanks for any suggestions.
Cem Payaslıoğlu
Department of Economics
Eastern Mediterranaen University
Magusa, TRNC, Mersin 10 Turkey
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