Dear Community,
I am a user of Stata 15. I am trying to estimate the threshold effects of inflation on value of shares traded using time series data.
I use this command, Threshold value, regionvars(value1 inflation) threshvar(inflation1) nthreshold(2) and I had this result.
. threshold marketcap, threshvar (L. inflation) regionvars (L. marketcap inflation interestrate) nthresholds (2)
Searching for threshold: 1
(Running 86 regressions)
.................................................. 50
....................................
Searching for threshold: 2
(Running 60 regressions)
.................................................. 50
..........
Threshold regression
Number of obs = 107
Full sample: 1991q2 - 2017q4 AIC = 1402.4793
Number of thresholds = 2 BIC = 1434.5533
Threshold variable: L.inflation HQIC = 1415.4817
Order Threshold SSR
1 9.4333 4.438e+07
2 16.9333 4.211e+07
Market cap. Coef. Std. Err. z P>|z| [ 95% Conf. Interval]
Region1
Market cap.
L1. .7015855 .0585698 11.98 0.000 .5867907 .8163802
inflation 1046.162 334.699 3.13 0.002 390.164 1702.16
interest rate -293.9598 53.70977 -5.47 0.000 -399.229 -188.6906
_cons 4293.822 2420.274 1.77 0.076 -449.827 9037.472
Region2
Market cap.
L1. 1.004932 .0161035 62.40 0.000 .9733692 1.036494
inflation -.4003764 34.83209 -0.01 0.991 -68.67001 67.86926
interest rate -1.705306 8.893831 -0.19 0.848 -19.13689 15.72628
_cons 157.0955 502.303 0.31 0.754 -827.4003 1141.591
Region3
Market cap.
L1. .9415728 .0246128 38.26 0.000 .8933327 .989813
inflation -1.075228 7.273 -0.15 0.882 -15.33005 13.17959
interest rate -4.740263 5.111379 -0.93 0.354 -14.75838 5.277856
_cons 496.4073 364.1677 1.36 0.173 -217.3482 1210.163
Guys, can any of you please help me to interpret the result above.
Thank you in advance.
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