st: A Question on Simulating S.E of the Elasticities

[Asgar Khademvatani <akhademv@ucalgary.ca>]

Dear All,

Basically, I have estimated a system of the cost and labor-share 
equation using ISURE. I am using time-series of a particular U.S. 
industry stretched over 1958-2000 for 43 years. Then I have generated a  
variable called "sve_sg"  as this new variable is a function of all RHS 
variables of the cost function. Then, I have generated the elasticities 
of this new defined variable "sve_sg" with respect to each factor as it 
is function of that factor. For example,  If I would like to calculate 
its elasticity with respect to the factor"l" , in doing so, the first, 
I  generate this elasticity, named, "Isvl_sr_sg"  as you see in the 
following. so that this generated elasticity is a function of some 
variables that each are as function of the estimated coefficients and 
RHS variables of the cost function. I have include all of these 
variables  in the following.


Isvl_sr_sg = (d2cel_sg)*((pl_sg)/(sve_sg))

where
d2cel_sg = ((pvc_sg)*(_b[lple_sg]+(sve_sghat*sl_sghat)))/((pl_sg)*(e_sg))

sve_sg = (sve_sghat)*(pvc_sg / e_sg)

sl_sghat = _b[lpl_sg] + _b[lple_sg]*le_sg + _b[lplk_sg]*lk_sg + 
_b[lplt_sg]*t

sve_sghat =_b[le_sg] + _b[lple_sg]*lpl_sg + _b[lpme_sg]*lpm_sg + 
_b[lek_neg_sg]*lk_sg + _b[let_sg]*t

pvc_sg = (exp(_b[_cons] + _b[lq_sg]*lq_sg + _b[lpl_sg]*lpl_sg + 
_b[lpm_sg]*lpm_sg + _b[lk_sg]*lk_sg +_b[le_sg]*le_sg + _b[t]*t + 
_b[lple_sg]*lple_sg + _b[lplk_sg]*lplk_sg + _b[lpme_sg]*lpme_sg + 
_b[lpmk_sg]*lpmk_sg + _b[lek_neg_sg]*lek_neg_sg + _b[lplt_sg]*lplt_sg + 
_b[lpmt_sg]*lpmt_sg + _b[let_sg]*let_sg + _b[lkt_sg]*lkt_sg))

My target is simulating the standard errors(S.E) of such elasticity over 
43 years. To do so, my procedure is that I initially re-run the ISURE 
model and then I am using the following "testnl" command as follows:

est replay "ISURE"
testnl [=lvc_sg]: Isvl_sr_sg   //   lvc_sg is the cost function.

But, after runnign my .do file,  I am getting the following error. Can 
anybody help me out that what is wrong with using "testnl" command?

testnl [=lvc_sg]: Isvl_sr_sg

 (1)  [ = lvc_sg]: Isvl_sr_sg
equation [-(lvc_sg] not found
r(303);

end of do-file
r(303);

I am not sure whether this procedure to simulate S.E of the Isvl_sr_sg 
is  correct or not. If not so, anybody please can help me on this 
matter, how to calculate the S.E though any other way?

Thank you

Asgar Kh.
University of Calgary-Canada


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