Hello,
I have a function with 4 inputs including capital(K), labor(L), energy(E), and material(M) in a nested CES form: Y=A⋅ {a[b(c⋅K^(-α)+(1-c)⋅E^(-α) )^(ρ⁄α)+(1-b)⋅L^(-ρ) ]^(β⁄ρ)+(1-a)⋅M^β }^((-1)⁄β). My dataset consists of Y, K, L, E, and M data for some manufacturing industry sub-sectors between 1975-2005. Based on this, what is the stata command for the substitution elasticity between K and E? When I use the command nlsur (Y = A * (a * (b*((cK)^(-alpha)+(1-c)((E)^(-alpha)))^(rho/alpha) + (1-b)(L)^(-rho))^(beta/rho) + (1-a)(M)^beta)^(-1/beta)), start(a = 0.5, b = 0.5, c = 0.5, alpha = 0.5, rho = 0.5, beta = 0.5, A = 1), it gives me an initial value error.
It would make me very happy if you could help.
Related Posts with nested CES function
Creating a cumulative sumHey everyone and thanks for taking the time. Here is some sample data, that I will use to explain m…
Stata 13. Counting variable on loop.Dear all, I'm having problems trying to generate a variable of count from a local and a loop. I need…
How to generate growth rates in a 5 year framework on unbalanced panel data?Hello Stata Community, I am trying to compute the growth rates of gdp per capita per country as sho…
Graphing results of segmented regression (assessing the guideline effects on the rate of dose reduction)Hi STATA experts, Please help out a novice! I need to graphically display results of the segmented…
Is there any command that can do the BSADF test?Is there any command that can do the BSADF test? Relevant papers Phillips et.al(PWY,2011),Phillips …
Subscribe to:
Post Comments (Atom)
0 Response to nested CES function
Post a Comment