[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: st: Testing Linear Trade offs

From   Maarten buis <>
Subject   Re: st: Testing Linear Trade offs
Date   Thu, 1 Oct 2009 06:11:45 -0700 (PDT)

--- On Thu, 1/10/09, Abhijit Sen Gupta wrote:
>     I am interesting in empirically testing the trade
> off between three indices. I have data for three indices
> -- Index1, Index 2 and Index 3. All of these range between 0
> and 1. The idea is that increasing one index, say Index 1,
> should induce lower Index 2, or lower Index 3, or a
> combination of these two policy adjustments (a combination
> of lower Index 2 and lower Index 3). Hence, I need to test
> the validity of a linear tradeoff.  I was thinking of a
> way to test that the weighted average of the three indices
> are equal to some constant. Could somebody please let me
> know if there is a procedure to do this or any other method
> to test the trade offs?.

Sounds to me like a correlation matrix, where the presence of
trade-off is represented by a negative correlation.

Hope this helps,

Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen

Send instant messages to your online friends 

*   For searches and help try:

© Copyright 1996–2017 StataCorp LLC   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index