I am having problems with forecasting panel data. I have a dataset with about 200 firms and i want to forecast the ESG score and market capitalization for each firm based only on its own past lags for 16 years in the future. However while doing this I run into several problems.
1) How should I start by doing this, I tried to recreate the third example from the stata manual (https://www.stata.com/manuals13/tsfo...pdf#tsforecast). However I can not seem to get it to run. I get it to run regressions for all different firms, with the following:
Code:
by ID, sort : regress ESGScore L(1/3).ESGScore
Code:
"Command cannot be used with panel data."
Code:
help xtreg postestimation help predict help forecast
This is a sample of my data:
Note: ID is a firm identifier, MC is the market capitalization in usd and ESG is a score for the firm (on a scale of 0-100)
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input byte ID int year double(MC ESG) 1 2015 87606000 41.71 1 2016 1.168e+11 48.68 1 2017 93267760 90.82 2 2015 14359978 58.85 2 2016 12378029 60.55 2 2017 15583315 76.61 3 2015 6321329 69.98 3 2016 6445431 41.58 3 2017 7515226 70.58 4 2015 3658706 63.36 4 2016 3365125 61.86 4 2017 5899798 81.94 5 2015 6731480 52.27 5 2016 8242896 33.99 5 2017 12080157 53.11 end
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