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st: Weighted Least Squares


From   "Tam Phan" <tamdphan@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Weighted Least Squares
Date   Tue, 15 Apr 2008 10:40:02 -0400

Hello Stata Users:

I have a quick question on weighted Least squares:  Below is the
following econometric equation:

Q1+Q2 = alpha + [  (Q1/(Q1+Q2))*X1 + (Q2/(Q1+Q2))*X2 ]b + e

Where X1 and X2 are the same explanatory variables, however with
different numerical values.  For example, X1 would be the % in one
zone, and X2 is the percent in another zone.

Is there anything wrong w/ this logic?

How about this econometric model:

y1=alpha1+beta1(P)+e
y2= alpha2 +beta2(P)+v

To obtain the aggregate effect one would sum:

y1+y2=(alpha1+alpha2) +(beta1+beta2)P+(e+v)

Is there anything wrong with the above logic?

Tam

Tam
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