I am using Levinsohn and Petrin (2003) approach with the attached Stata dataset for the same. However, I got negative coefficients of logL and logK in case of Levinsohn and Petrin (2003) approach. Results have been attached in the form of the image below. These individual TFP Values as dependent variables are regressed with infrastructure stocks as an independent variable.
Stata Code:
prodest lnGVA, method (lp) free(lnL) proxy(lnInput) state(lnK) poly(3) valueadded reps(250)
predict TFP
Can anyone help to overcome this issue in the result? Please respond.
| Famid | year | lnGVA | lnK | lnL | lnInput | 
| 1 | 2015 | 13.34451139 | 14.43711069 | 13.82499642 | 14.94789177 | 
| 2 | 2015 | 10.90103056 | 11.39432509 | 12.00363817 | 12.56028455 | 
| 3 | 2015 | 10.52884158 | 10.90823019 | 11.74051512 | 12.56156862 | 
| 4 | 2015 | 11.71408167 | 12.96707595 | 11.86919333 | 13.19120632 | 
| 5 | 2015 | 10.78025708 | 10.57660072 | 11.29931136 | 12.61370021 | 
| 6 | 2015 | 11.30195799 | 10.79404052 | 10.71557266 | 12.07061138 | 
| 7 | 2015 | 13.89161883 | 14.69274188 | 13.91372923 | 15.59004602 | 
| 8 | 2015 | 12.68505841 | 13.08795162 | 13.27239071 | 14.34357928 | 
| 9 | 2015 | 12.17481436 | 12.49800879 | 11.90358822 | 13.0876142 | 
| 10 | 2015 | 10.37213186 | 10.36546633 | 10.85971028 | 11.51539809 | 
| 11 | 2015 | 11.89178185 | 12.93752458 | 11.87475212 | 13.15976277 | 
| 12 | 2015 | 12.88529455 | 13.74124074 | 13.52565546 | 14.57748312 | 
| 13 | 2015 | 11.26551282 | 11.99049128 | 12.59243988 | 13.35132999 | 
| 14 | 2015 | 11.91772596 | 13.18896836 | 12.4565356 | 13.65617625 | 
| 15 | 2015 | 14.08798489 | 14.43171365 | 14.08198176 | 15.39174269 | 
| 16 | 2015 | 11.84720763 | 14.04701543 | 12.27763023 | 13.27226267 | 
| 17 | 2015 | 11.84987474 | 12.32818954 | 13.05611887 | 13.71366131 | 
| 18 | 2015 | 12.2899301 | 12.94906791 | 12.83675914 | 13.8142172 | 
| 19 | 2015 | 13.31159488 | 14.0107976 | 14.37021545 | 14.99198913 | 
| 20 | 2015 | 7.930242796 | 7.485056583 | 10.17564981 | 8.622648785 | 
| 21 | 2015 | 12.58255248 | 13.30226199 | 13.42014082 | 14.52482222 | 
| 22 | 2015 | 12.45019737 | 12.54385883 | 12.59546596 | 13.57663852 | 
| 23 | 2015 | 11.82869258 | 13.06866314 | 13.13062515 | 14.08698579 | 
| 1 | 2016 | 13.48373632 | 14.55212104 | 13.81087483 | 14.87352281 | 
| 2 | 2016 | 11.09011635 | 12.09660422 | 12.06294103 | 12.5021024 | 
| 3 | 2016 | 10.43491923 | 10.92367085 | 11.54507315 | 12.3586785 | 
| 4 | 2016 | 11.26804467 | 13.0838402 | 11.83438558 | 13.05207522 | 
| 5 | 2016 | 10.7530443 | 10.4765827 | 11.23227197 | 12.73695465 | 
| 6 | 2016 | 11.41296781 | 10.8661762 | 10.80685514 | 12.14263568 | 
| 7 | 2016 | 13.9810047 | 14.90279048 | 13.99064468 | 15.47850878 | 
| 8 | 2016 | 12.75290698 | 13.25330751 | 13.23466654 | 14.43921191 | 
| 9 | 2016 | 12.17262238 | 12.62311498 | 11.81393335 | 12.95478697 | 
| 10 | 2016 | 10.49895051 | 10.55531489 | 10.86526777 | 11.58579992 | 
| 11 | 2016 | 11.52578885 | 12.93922703 | 11.86191193 | 13.20034564 | 
| 12 | 2016 | 12.99481134 | 13.78688988 | 13.55250289 | 14.51278126 | 
| 13 | 2016 | 11.53622211 | 12.27852734 | 12.51736626 | 13.27750928 | 
| 14 | 2016 | 12.20480924 | 13.55141515 | 12.49875718 | 13.69012924 | 
| 15 | 2016 | 14.14469829 | 14.47629798 | 14.13122964 | 15.45322844 | 
| 16 | 2016 | 11.80136403 | 14.22621284 | 12.25082132 | 13.35906515 | 
| 17 | 2016 | 11.91459215 | 12.41077943 | 13.10543896 | 13.69703396 | 
| 18 | 2016 | 12.39233098 | 13.06787942 | 12.88085472 | 13.9162249 | 
| 19 | 2016 | 13.50721806 | 14.10146753 | 14.47325385 | 14.97086086 | 
| 20 | 2016 | 7.590132471 | 7.815032882 | 10.07225939 | 8.626449627 | 
| 21 | 2016 | 12.79879814 | 13.47297179 | 13.50166245 | 14.52501448 | 
| 22 | 2016 | 12.73090918 | 12.64631381 | 12.64053977 | 13.87087559 | 
| 23 | 2016 | 12.05060545 | 13.1477183 | 13.11664506 | 14.11136877 | 
| 1 | 2017 | 13.37820655 | 14.57031481 | 13.87654921 | 14.99791944 | 
| 2 | 2017 | 11.31482949 | 11.94872061 | 12.1067936 | 12.48835749 | 
| 3 | 2017 | 10.48552974 | 11.50844226 | 11.50258216 | 12.33606399 | 
| 4 | 2017 | 11.45326146 | 13.4451234 | 11.89512877 | 13.13305958 | 
| 5 | 2017 | 10.53909949 | 10.41244812 | 11.2286642 | 12.71520385 | 
| 6 | 2017 | 11.32904661 | 10.91523748 | 10.70495088 | 11.98065828 | 
| 7 | 2017 | 13.91086343 | 15.06872287 | 14.03587425 | 15.54622029 | 
| 8 | 2017 | 12.98490547 | 13.39216318 | 13.3848061 | 14.65935721 | 
| 9 | 2017 | 12.08523011 | 12.39343758 | 11.86197541 | 12.95263912 | 
| 10 | 2017 | 10.6732993 | 10.92220152 | 10.98576719 | 11.73012375 | 
| 11 | 2017 | 11.90939933 | 13.25324863 | 11.88186489 | 13.18303098 | 
| 12 | 2017 | 13.19309476 | 13.82810032 | 13.62542212 | 14.61800501 | 
| 13 | 2017 | 11.72306923 | 12.43306157 | 12.42895616 | 13.41005668 | 
| 14 | 2017 | 12.21973581 | 13.62180352 | 12.54387614 | 13.72163599 | 
| 15 | 2017 | 14.10537468 | 14.43870418 | 14.12643932 | 15.34049703 | 
| 16 | 2017 | 12.04438547 | 14.43877548 | 12.31398041 | 13.40533761 | 
| 17 | 2017 | 11.98871848 | 12.33912744 | 13.18484604 | 13.69294326 | 
| 18 | 2017 | 12.53221462 | 13.23962174 | 12.93065551 | 14.01079714 | 
| 19 | 2017 | 13.5782688 | 14.25990109 | 14.51053547 | 15.04941816 | 
| 20 | 2017 | 7.673050689 | 7.846913183 | 10.08397409 | 8.60560012 | 
| 21 | 2017 | 13.23123952 | 13.50385468 | 13.57157867 | 14.59337051 | 
| 22 | 2017 | 12.61675213 | 12.68825504 | 12.74948936 | 13.66224058 | 
| 23 | 2017 | 12.22915794 | 13.35048112 | 13.11830917 | 14.14173054 | 
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