I want to construct an index using Dynamic Factor Model (DFM). I have 6 dimensions and there are around 2-5 variables under each dimension.
1. As far as I read there are some augmented forms of the model like generalized DFM, Bayesian DFM.
Which one should I use? And can someone guide me step-by-step? A tutorial video might help as I am new to STATA.
2.There is a video on factor analysis using the command "factor variable1 variable2...." - is this something different? Cause STATA guide book shows the command involving 'dfactor'.....and as a new user I find the Guide/Help document of STATA challenging to interpret.
Thank you.
P.S. I'm on STATA version 13
1. As far as I read there are some augmented forms of the model like generalized DFM, Bayesian DFM.
Which one should I use? And can someone guide me step-by-step? A tutorial video might help as I am new to STATA.
2.There is a video on factor analysis using the command "factor variable1 variable2...." - is this something different? Cause STATA guide book shows the command involving 'dfactor'.....and as a new user I find the Guide/Help document of STATA challenging to interpret.
Thank you.
P.S. I'm on STATA version 13
