I want to use prodest to estimate TFP,but my production function is a translog-form,as the following equation showing:
lny=w+a*lnl+b*lnk+(lnl)^2+c*(lnk)^2+d*lnl*lnk
The code is as fllowing,I have found that tfp calculated by prodest+acf+translog is totally different from tfp calculated by prodest+acf,the former tfp is really too big.I wonder if you can figure mistakes in my code.
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Code:
* Example generated by -dataex-. To install: ssc install dataex clear insheet using "https://raw.githubusercontent.com/GabrieleRovigatti/prodest/master/stata/data/prodest.csv", names clear prodest log_y, method(lp) free(log_lab1 log_lab2) proxy(log_materials) state(log_k) valueadded acf translog id(id) t(year) reps > (50) .........10.........20.........30.........40.........50 lp productivity estimator translog PF ACF corrected Dependent variable: value added Number of obs = 2544 Group variable (id): id Number of groups = 497 Time variable (t): year Obs per group: min = 1 avg = 5.1 max = 11 ------------------------------------------------------------------------------ log_y | Coef. Std. Err. z P>|z| [95% Conf. Interval] -------------+---------------------------------------------------------------- log_lab1 | .887048 .0024949 355.54 0.000 .8821581 .8919379 log_lab2 | .7611732 .0016125 472.05 0.000 .7580128 .7643337 log_k | -.5397494 .0018904 -285.52 0.000 -.5434546 -.5360443 var_1_1 | .1001688 .0032244 31.07 0.000 .0938492 .1064885 var_1_2 | .0163688 .0024564 6.66 0.000 .0115544 .0211832 var_1_3 | -.0623013 .0015516 -40.15 0.000 -.0653424 -.0592602 var_2_2 | .0797299 .002452 32.52 0.000 .0749241 .0845357 var_2_3 | -.0491968 .0015186 -32.40 0.000 -.0521732 -.0462204 var_3_3 | .0410398 .0020477 20.04 0.000 .0370265 .0450532 ------------------------------------------------------------------------------ Wald test on Constant returns to scale: Chi2 = 4205.71 p = (0.00) Estimated parameters displayed. To see estimated input elasticities, type predict, parameters . predict tfp_translog,residual . prodest log_y, method(lp) free(log_lab1 log_lab2) proxy(log_materials) state(log_k) valueadded acf id(id) t(year) reps(50) .........10.........20.........30.........40.........50 lp productivity estimator Cobb-Douglas PF ACF corrected Dependent variable: value added Number of obs = 2544 Group variable (id): id Number of groups = 497 Time variable (t): year Obs per group: min = 1 avg = 5.1 max = 11 ------------------------------------------------------------------------------ log_y | Coef. Std. Err. z P>|z| [95% Conf. Interval] -------------+---------------------------------------------------------------- log_lab1 | .5486727 .0662128 8.29 0.000 .418898 .6784474 log_lab2 | .4122355 .1238101 3.33 0.001 .1695721 .6548989 log_k | .4765666 .0766743 6.22 0.000 .3262877 .6268455 ------------------------------------------------------------------------------ Wald test on Constant returns to scale: Chi2 = 43.36 p = (0.00) . predict tfp_acf,residual . . ****the tfp calculated by prodest+acf+translog is too big,I wonder if you can tell me causes. . su tfp_translog tfp_acf Variable | Obs Mean Std. Dev. Min Max -------------+--------------------------------------------------------- tfp_translog | 2,544 16.4528 1.713113 9.93541 24.53713 tfp_acf | 2,544 5.779031 .8841653 2.97516 9.391429 end
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