I have a question that is related to hypoteses testing in stata
I run the following Pooled OLS regression (Stata 14.2):
Code:
regress Y L.nopattm L.onlytm L.onlypat L.pattm L.X1 L.X2 i.X4 X5 X6 X7 i.year,noconstant vce(robust)
I would need to test if performance is higher if the firm uses IP right protection. Thus, I would test the following hypotheses (where b1, b2, b3 and b4 are the estimated coefficients for the four dummy variables)
1) H0: b4>b1
2) H0: b2>b1
3) H0: b3>b1
I would test if performance is higher if the firm chooses to use both a patents and a trademarks than only one type of IP right
4)H0: b4>b2
5)Ho: b4>b3
If I have understood correctly from a previous discussion (see the following link : https://www.statalist.org/forums/for...then-the-other), in order to test these hypotheses, I should perform one side t tests. For example, I should use the following code in order to test the hypothesis number 4
Code:
test L.onlytm L.pattm ( 1) L.onlytm = 0 ( 2) L.pattm_d = 0 F( 2,686216) =45442.44 Prob > F = 0.0000 . test L.onlytm -L.pattm=0 ( 1) L.onlytm - L.pattm_d = 0 F( 1,686216) = 7.96 Prob > F = 0.0048 . local sign_car = sign(_b[L.pattm]-_b[L.onlytm]) . display "H_0: PAT TM coef >= TM coef. p-value = " normal(`sign_car'*sqrt(r(F))) H_0: PAT TM coef >= TM coef. p-value = .99760379
Tests suggest that: b4 and b2 are not jointly equal to zero; are not equal and b4>b2
Is this the properly interpretation?
Furthermore, I would test if adding an activity (i.e patents) while the other activity (i.e trademarks) is already being performed has a higher incremental effect on performance than adding the activity (patents) in isolation. Thus, I need to test the following hypothesis:
6) b4-b2>b3-b1
Can I follow the same approach as above and use the following code to test this hypothesis?
Code:
test L.nopattm L.onlytm L.onlypat L.pattm ( 1) L.nopattm = 0 ( 2) L.onlytm = 0 ( 3) L.onlypat = 0 ( 4) L.pattm_d = 0 F( 4,686216) =25374.94 Prob > F = 0.0000 . . test L.nopattm- L.onlytm- L.onlypat- L.pattm=0 ( 1) L.nopattm - L.onlytm - L.onlypat - L.pattm_d = 0 F( 1,686216) =82696.42 Prob > F = 0.0000 . . local sign_ip = sign(_b[L.pattm]-_b[L.onlytm]-_b[L.onlypat]+_b[L.nopattm]) . . display "H_0: pattm-onytm >onlypat-nopattm p-value = " normal(`sign_ip'*sqrt(r(F))) H_0: pattm-onytm >onlypat-nopattm p-value = 0
The four coefficients are not jointly equal to zero, are not equal and the test rejects the H0(H0 states that b4-b2>b3-b1). Is this interpretation right?
How can I obtain the value of the t statistic?
I thank you all in advance for your help.
Chiara
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