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To replicate Gabaix and Landier (2007 OJE)
To replicate Gabaix and Landier (2007 OJE)

Hi

Now I replicate Gabaix and Landier (2007 OJE). What they did is to run the following regression using the Execomp and Compustat Data.

ln (CEO pay) = c+ a ln (CEO's firm size) +b ln (Reference firm size such as Top 250 firm size)

. After getting estimates of a and b, what they did to test the following null hypothesis that a+b=1. Using the same data set and Stata, I estimated a and b. But I have no idea of what I do next. Please give me any suggestions and tips for further steps. Thanks in advance

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To replicate Gabaix and Landier (2007 OJE)

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