Hello Stata community,
I am calculating firms TFP for the period 1990-2015 with an unbalanced panel. I am trying to used the OLS, the FE and the LP.
For the OLS I think I have clear the syntax to obtain the value of TFP:
regress ln_va ln_capital ln_labor, vce(cluster firm)
predict ln_TFP_OLS , resid
gen TFP_OLS=exp(ln_TFP_OLS)
But for FE and LP(Levinsohn and Petrin) I am not sure of the syntax.
For the FE I start with:
xtreg ln_va ln_capital ln_labor, fe vce(cluster firm)
However I do not know the predict syntax and if I need to calculated the exponential value too.
The same problem for PL where I start with:
levpet ln_va, free(ln_labour) proxy(ln_intermediate_inputs) capital(ln_capital) valueadded reps(250)
But I do not know hot to continue.
Does anyone know the complete syntax to obtain the value of TFP with FE and LP?
Thank you very much!
Guido
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