[Limdep Nlogit List] Industry Classifications in Random Parameter Model
cem.payasli at emu.edu.tr
Thu Mar 23 20:45:43 AEDT 2017
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 :
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
? 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
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
However, that would be formidable number of dummies for some
Is there any other way around ?
Thanks for any suggestions.
Department of Economics
Eastern Mediterranaen University
Magusa, TRNC, Mersin 10 Turkey
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