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st: Estimating total factor productivity


From   "dadhinp@yahoo.com" <dadhinp@yahoo.com>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   st: Estimating total factor productivity
Date   Mon, 7 Jul 2008 07:39:15 -0700

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Dear STATA users
I want to estimate TFP. Since I have very small size of time series data set (20 obervation) I am using CD production function with CRS and perfectly competetive market assumption. But I dont know how to write stata command. Following is the data set.





Year     Ln(K/L)      Ln(Y/L)

 1981     2.1715      8.4583
1982     2.1887      8.5757
1983     2.2061      8.5374
1984     2.2214      8.6244
1985     2.2346      8.7500
1986     2.2453      8.7886
1987     2.2558      8.8013
1988     2.2652      8.8624
1989     2.2736      8.9083
1990     2.2805      8.9494
1991     2.2875      9.0049
1992     2.2904      9.0085
1993     2.2934      8.9990
1994     2.2963      9.0333
1995     2.2989      9.0199
1996     2.3031      9.0336
1997     2.3070      9.0385
1998     2.3110      9.0307
1999     2.3138      9.0327
2000     2.3164      9.0534


K=capital L=labor Ln=log
I found one paper using the same data set estimated Ln(Y/L)=4.43 +0.46Log(K/L) But I get very different result. So could you please to suggest me STATA code to estimate CD function and to find TFP and Change in TFP.

Thank you in Advance.

Dadhi













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