Dear all,
I am trying to test parameters between two models of different demographic.
so my hypothesis is
h1: beta1= beta 2
h2: beta1<>beta2
I estimate both models and note the values of beta1 and beta 2 and the difference between them
Lets say is x= beta1-beta2
now the Standard error of (x) is calculated as
se(x)= sqrt[var(beta1) +var(beta2)- 2 covariance(beta1,beta2)]
1. var i.e. the variance I find using the variance-covariance matrix but don't see how to use the covariance in this formula.
2. I was computing this on excel but perhaps there is a quicker way through stata?
Any help would be appreciated.
Thank you
Mar
I am trying to test parameters between two models of different demographic.
so my hypothesis is
h1: beta1= beta 2
h2: beta1<>beta2
I estimate both models and note the values of beta1 and beta 2 and the difference between them
Lets say is x= beta1-beta2
now the Standard error of (x) is calculated as
se(x)= sqrt[var(beta1) +var(beta2)- 2 covariance(beta1,beta2)]
1. var i.e. the variance I find using the variance-covariance matrix but don't see how to use the covariance in this formula.
2. I was computing this on excel but perhaps there is a quicker way through stata?
Any help would be appreciated.
Thank you
Mar