Wednesday, January 2, 2019

Estimation of Production function using PRODEST

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I have estimated my production function using Levinsohn-Petrin and I get insignificant capital, then I run LP using the prodest command and I run the prodest command twice. The first time I get the capital significant at 10% and then at 1%. the coefficients across the three results are similar. so can someone explain why the significance level is changing?

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