I'm not sure about adding fixed effects for the variables year,id,region (using the estprod
library) as in this paper using LP stimator.
In the STATA forum ( #18 #19;
prodest
library) it seems that to add fixed effects I have to create dummies Control parameter.qui tab year, gen(dy) // generate one dummy per year
prodest log_y, free(log_lab1 log_lab2) state(log_k) proxy(log_investment) va met(op) poly(4) reps(40) id(id) t(year) control(dy*)
Code
library(dplyr)
library(estprod)
data = read.csv("data_tfp.csv")
data = data %>%
mutate(v = 1,
rgn = region,
group = group_indices(., id, region),
grp = group) %>%
spread(rgn, v, fill = 0) %>% #generate one dummy per region
arrange(id, year)
md0 = estprod::levinsohn_petrin(data,
formula = y ~ l | k | m | a+b+c+d,
id = "id",
time = "year",
reps = 10,
gross = T)
summary(md0)