Hello everyone,

I am very new here and a very new user of Stata. I am currently in my final year in my undergraduate working on my capstone. My supervisor asked me to do an LR test for my production data. I ran translog and Cobb-Douglas separately and then did the LR test. So, this is what happened that got me very confused. Site One, Period A - LR statistic is not significant, Site One Period B - LR statistic is significant. Site Two, Period A - LR statistic is significant. Site Two, Period B - LR statistic is not significant? Please note that for the two sites Period A has the same sets of variables and Period B has a different set of variables for the two sites.

What makes me confused is I do not know how to proceed since for Period A, one site has significant LR and the other has insignificant and I need to use the same model for comparability purposes. Please note that my translog model detected a lot of collinearity. Any thoughts/help on this is much appreciated.

Thank you very much.