Dear community,
I am trying to implement CS-ARDL model via xtdcce2. I am using 9 countries and 1990-2018 data and the version of stata is Stata15. My dependent variable is lnrene and independent variables are lnee lnei lnrenexp lngdp. While trying to implement, I get the following output:
xtdcce2 d.lnrene, lr(lnee lnei lnrenexp lngdp ) lr_options(ardl) cr(lnrene lnee lnei lnrenexp lngdp) cr_lags(0) reportconstant
(Dynamic) Common Correlated Effects Estimator - Mean Group (CS-ARDL)
Panel Variable (i): id Number of obs = 252
Time Variable (t): year Number of groups = 9
Degrees of freedom per group: Obs per group (T) = 28
without cross-sectional averages = 23
with cross-sectional averages = 18
Number of F(90, 162) = 0.91
cross-sectional lags 0 to 0 Prob > F = 0.68
variables in mean group regression = 45 R-squared = 0.66
variables partialled out = 45 R-squared (MG) = 0.13
Root MSE = 0.30
CD Statistic = 0.94
p-value = 0.3471
D.lnrene Coef. Std. Err. z P>z [95% Conf. Interval]
Short Run Est.
Mean Group:
_cons -28.25181 35.35791 -0.80 0.424 -97.55203 41.04842
lnee -.2653635 .156287 -1.70 0.090 -.5716804 .0409535
lnei 1.021577 1.380035 0.74 0.459 -1.683241 3.726396
lnrenexp .8543453 .1945932 4.39 0.000 .4729497 1.235741
lngdp -1.536072 5.506146 -0.28 0.780 -12.32792 9.255776
Adjust. Term
Mean Group:
lr_lnee -1.265363 .156287 -8.10 0.000 -1.57168 -.9590465
Long Run Est.
Mean Group:
lr__cons -29.04499 35.69681 -0.81 0.416 -99.00946 40.91948
lr_lnei 1.123589 1.389903 0.81 0.419 -1.600571 3.847748
lr_lngdp -.6887734 5.26852 -0.13 0.896 -11.01488 9.637337
lr_lnrenexp .6296933 .1234743 5.10 0.000 .3876882 .8716984
Mean Group Variables: _cons
Cross Sectional Averaged Variables: lnrene lnee lnei lnrenexp lngdp
Long Run Variables: lr__cons lr_lnei lr_lngdp lr_lnrenexp
Adjustment variable(s): lr_lnee (lnee)
Now, here, it says that the adjustment term says is lr_lnee (lnee). Is it error correction term they are referring to? I mean is the adjustment term=error correction term or ECT? If it is ECT, then where is the long-run coefficient of lnee? If it is not the ECT term and really is the long-run coefficient of lnee, then how do I get the ECT term for CS-ARDL? I applied the following commands as per as the thread of statalist goes:
ssc uninstall xtdcce2
package xtdcce2 from http://fmwww.bc.edu/repec/bocode/x
'XTDCCE2': module to estimate heterogeneous coefficient models using common correlated effects in a dynamic panel
(package uninstalled)
. net install xtdcce221 , from("https://ift.tt/31olShZ)
checking xtdcce221 consistency and verifying not already installed...
the following files already exist and are different:
c:\ado\plus\x\xtset2.sthlp
c:\ado\plus\x\xtcd2.ado
c:\ado\plus\x\xtcd2.sthlp
c:\ado\plus\x\xtdcce2_auxiliary.ado
no files installed or copied
(no action taken)
r(602);
As you can see, I tried uninstalling the old command and tried to add the new command as Dr JanDitzen recommended but it is not working. So how do I get the ECT term out of CS-ARDL, please? Please help.
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