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Re: st: policy simulation

From   Dan Waldo <>
To   "" <>
Subject   Re: st: policy simulation
Date   Wed, 25 Jul 2012 07:12:03 -0700 (PDT)

Maarten's observation from yesterday is quite correct.
But if you mis-spoke and you really want to look at the effect on your dependent variable of everybody having ORT=1, a clunky way to do this (assuming that X1 and X2 are uncorrelated with ORT) would be to use the predict command to generate the estimated y (say, y_hat) and then 

. gen policy_effect =y_hat-(b1*x1 + b2*x2 + b3) [you'd pull the coefficients from the e(b) vector ]

On Tue, Jul 24, 2012 at 2:46 AM, Shikha Sinha wrote:
> I want to conduct a counterfactual policy simulation in state. I
> estimate the following model:
> Y = b1X1 + b2X2 +b3ORT +e
> ORT is the main independent variable and is binary. The estimated b3
> coefficient is 0.06. Now I want to answer the counterfactual question:
> what would have been b3 if everyone got access to ORT? How do I get
> this?

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