how to solve for a nonlinear equation

[Trang Thu Vu]

Hello,

I'm looking for a way to solve this equation in Stata:

0.1(w+2000000)^(1-r) + 0.9(w-z)^(1-r) = w^(1-r)

where w = individual income
z= willingness to pay for a lottery

I'd like to find r that is the risk preference coefficient.
The data set is at individual level.

Thank you very much for your help!

[Nicola Tommasi]

type help nl in command bar

[Trang Thu Vu]

I think nl is for non-linear least square estimation.
In my case, it is to find solution for one variable while the others are known and can get from the data.

[Hong Il Yoo]

You can use -nl- as a non-linear solver, as described in:

https://www.stata.com/support/faqs/p...ear-equations/