On Mon, Jul 7, 2008 at 9:39 AM, [email protected] <[email protected]> wrote:
> Dear STATA users
> I want to estimate TFP. Since I have very small size of time series data set (20 obervation) I am using CD production function with CRS
TFP = Total Factor Productivity?
CD = Cobb-Douglas?
CRS= Constant Returns to Scale?
> and perfectly competetive market assumption. But I dont know how to write stata command. Following is the data set.
>
> Year Ln(K/L) Ln(Y/L)
>
> 1981 2.1715 8.4583
> 1982 2.1887 8.5757
> 1983 2.2061 8.5374
> 1984 2.2214 8.6244
> 1985 2.2346 8.7500
> 1986 2.2453 8.7886
> 1987 2.2558 8.8013
> 1988 2.2652 8.8624
> 1989 2.2736 8.9083
> 1990 2.2805 8.9494
> 1991 2.2875 9.0049
> 1992 2.2904 9.0085
> 1993 2.2934 8.9990
> 1994 2.2963 9.0333
> 1995 2.2989 9.0199
> 1996 2.3031 9.0336
> 1997 2.3070 9.0385
> 1998 2.3110 9.0307
> 1999 2.3138 9.0327
> 2000 2.3164 9.0534
>
> K=capital L=labor Ln=log
> I found one paper using the same data set estimated Ln(Y/L)=4.43 +0.46Log(K/L)
I doubt it. Log(Y/L) is about 4 times greater than Log(K/L). The
above regression would generate predicted values of around 5.
> But I get very different result. So could you please to suggest me STATA code to estimate CD function and to find TFP and Change in >TFP.
Perhaps this may be of use:
http://www.stata.com/statalist/archive/2003-12/msg00581.html
Scott
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