I am a student new to STATA and may need your help on the below question.
I have the level regression as below:
π’ππ‘=ππ‘ + πΏπ + Ξ£π‘β₯1400πΌπ‘ WEπ ππ‘ + Ξ£π‘β₯1400π½π‘ ππ΄ππ ππ‘ +πππ‘
(u is log(population); WE is dummy variable if the city is in Western Europe; PAT is dummy variable if the city is involved in Atlantic trade; ππ‘ denotes time effects and πΏπ denotes city effects)
and I am looking to transfer this to first difference regression, I wrote the equation as below (not sure if this is correct)
π’ππ‘ βπ’ππ‘β1 =β³ππ‘ +πΌπ‘ WEπ ππ‘ + π½π‘ ππ΄ππ ππ‘ +πππ‘
And I tried to estimate the difference regression, and I thought that the point estimates of coefficients should be the same as those in the level regression.
I used the code:
gen yearn = 1 if year == 1300
replace yearn = 2 if year == 1400
replace yearn = 3 if year == 1500
replace yearn = 4 if year == 1600
replace yearn = 5 if year == 1700
replace yearn = 6 if year == 1750
replace yearn = 7 if year == 1800
replace yearn = 8 if year == 1850
bysort city: gen du=u-u[yearn-1]
gen du1 = du if year == 1850
reg du1 WE_y8 PAT_y8
However, when I compared the coefficients with those in level regression they are not the same. Please give me some advices on my equation and estimates.
The data sample are below
city | year | PAT | u | WE |
aachen | 1300 | 0 | 3.044523 | 1 |
aachen | 1400 | 0 | 2.302585 | 1 |
aachen | 1500 | 0 | 2.890372 | 1 |
aachen | 1600 | 0 | 3.135494 | 1 |
aachen | 1700 | 0 | 2.70805 | 1 |
aachen | 1750 | 0 | 3.178054 | 1 |
aachen | 1800 | 0 | 3.178054 | 1 |
aachen | 1850 | 0 | 3.951244 | 1 |
aalst | 1300 | 0 | 1.386294 | 1 |
aalst | 1400 | 0 | 1.386294 | 1 |
aalst | 1500 | 0 | 1.609438 | 1 |
aalst | 1600 | 0 | 1.94591 | 1 |
aalst | 1700 | 0 | 2.079442 | 1 |
aalst | 1750 | 0 | 2.079442 | 1 |
aalst | 1800 | 0 | 2.397895 | 1 |
aalst | 1850 | 0 | 2.833213 | 1 |
amsterdam | 1300 | 1 | 0 | 1 |
amsterdam | 1400 | 1 | 1.098612 | 1 |
amsterdam | 1500 | 1 | 2.70805 | 1 |
amsterdam | 1600 | 1 | 3.988984 | 1 |
amsterdam | 1700 | 1 | 5.298317 | 1 |
amsterdam | 1750 | 1 | 5.347107 | 1 |
amsterdam | 1800 | 1 | 5.379897 | 1 |
amsterdam | 1850 | 1 | 5.416101 | 1 |
athens | 1300 | 0 | 3.218876 | 0 |
athens | 1400 | 0 | 3.555348 | 0 |
athens | 1500 | 0 | 2.302585 | 0 |
athens | 1600 | 0 | 3.496508 | 0 |
athens | 1700 | 0 | 2.564949 | 0 |
athens | 1750 | 0 | 2.302585 | 0 |
athens | 1800 | 0 | 2.484907 | 0 |
athens | 1850 | 0 | 3.401197 | 0 |
0 Response to First Differences regression and estimate
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