Hi All,
I'm running a panel regression, with my dependent variable being the foreign value-added share of domestic exports. I have 64 countries and 11 time periods (2005-15). I'm running two separate regressions: the first is with Y at the aggregate level, and the second is with Y at the manufacturing level. The independent variables remain the same in both cases, since they are presumed to affect both the total and manufacturing Y similarly. My RHS is a mixture of share variables, levels, indices (such as overall index of regulatory quality) and a 2009 dummy. I'm using Stata/SE 14.2.
I have two questions. I'm using -xtreg fe (country fixed-effects) and clustering at the country level:
1. How do I ensure that my RHS falls between 0 and 1, since my dependent is a share variable?
2. When I change my Y from the aggregate indicator to the manufacturing level, the results change radically. Almost all the variables seem to lose significance, even though both aggregate Y and manufacturing Y are highly positively correlated and display the same pattern over 2005-15. Are there any specific circumstances under which this might happen? Are there any diagnostic tests that might help me understand this problem better?
Regards,
Saunok Chakrabarty
Related Posts with Independent Variable Significance for Similar Dependents
pc_simulate invalid syntax errorDear all, I am trying to use the command pc_simulate from the package PC_PANEL. I get a "syntax erro…
Extract alphanumeric ids from textDear STATAlisters, I have a column of text, which also contains number(s). It has some peculiaritie…
deleting variables with the same valuesHello everyone, I would like to delete all variables of a dataset, in which all observations have t…
Time Dummy Variable for xtabond2Hi A little background first. I am trying to test how democracy levels impact GDP. I am using the d…
categorical variableDear Members Hello i am working on Pakistan consumption data and using categorical variables. howev…
Subscribe to:
Post Comments (Atom)
0 Response to Independent Variable Significance for Similar Dependents
Post a Comment