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st: dependent as denominator on the RHS


From   "VU HOANG NAM" <[email protected]>
To   [email protected]
Subject   st: dependent as denominator on the RHS
Date   Tue, 26 Jun 2007 10:49:45 +0900 (JST)

Dear statalisters,

May I have a question regarding using dependent variable as a denominator of one independent variable? I have searched your site but could not find a clear answer. To be specific, this is my model:

Revenue: dependent variable
Export ratio= Export / Revenue: independent variable

I treat "export ratio" as an endogenous variable and expect it to have a positive effect on "revenue".

Could you please tell me if I will be criticized to make my model like this?

I have cross-section data. Can I just use normal endogenous model to run or is there any better model?

Thank you very much for your precious time.

Yours sincerely



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