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# Re: st: predict residuals in Stata 10

 From Marco Buur To statalist@hsphsun2.harvard.edu Subject Re: st: predict residuals in Stata 10 Date Wed, 31 Mar 2010 10:27:49 +0200

```Thank you very much
Yes,make sense, will run the both estimators and compare the results
Marco

On Thu, Mar 25, 2010 at 4:33 PM, Maarten buis <maartenbuis@yahoo.co.uk> wrote:
> --- On Thu, 25/3/10, Marco Buur wrote:
>> I would like to predict residuals after xtreg  command
>> (Stata 10) in order to use meanonly residuals for Duan
>> smearing antilog transformation
>
> The problem is that you did not model the thing you were
> interested in, you modeled E(log(y)) instead of log(E(y)).
> So the elegant solution is to estimate the right model
> to begin with, rather than trying to clean up the mess
> that is the result of estimating the wrong model. In
> non-panel data you do that by estimating a -glm- using
> the untransforemed explained/dependent/y variable and
> the -link(log)- option. The generalizaiton to panel data
> would be -xtgee-.
>
> *------------------- begin example ------------------------
> webuse nlswork, clear
> gen wage = exp(ln_wage)
> gen baseline = 1
> xtgee wage south union wks_ue grade collgrad baseline, ///
>      link(log) eform nocons
> *--------------------- end example ------------------------
> (For more on examples I sent to the Statalist see:
> http://www.maartenbuis.nl/example_faq )
>
> So the average wage for someone from the south, non-union,
> no unemployment in the last year, etc is \$2.01 an hour. In
> the south that is 100*(.895-1) = -10.4% less, while for
> Union member it is 14% more, etc. If you use -predict-, it
> will give you the average wage by default.
>
> Hope this helps,
> Maarten
>
> --------------------------
> Maarten L. Buis
> Institut fuer Soziologie
> Universitaet Tuebingen
> Wilhelmstrasse 36
> 72074 Tuebingen
> Germany
>
> http://www.maartenbuis.nl
> --------------------------
>
>
>
>
> *
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>

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