Hi All
I have difficulty running an SUREG translog cost function where one of my independent variables is latent. i.e., logC = f(plantlet, agrochemical, labour, capital, quality) but, quality is unobserved and is explained by plantlet, agrochemical, labour, capital, and other quality demand factors (e.g., household income). I will be grateful if I can be advised on how to go about this.
Many thanks
Prince
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