Hello!
I am trying to estimate markdowns which is the ratio of output elasticity in terms of labor over the wage. I was advised to estimate total factor productivity using Prodest for which I used the following line of code:
prodest log_va, free(log_labor) state(log_capital) proxy(log_material) valueadded met(op) poly(4) reps(40) id(firmid) t(year)
I am completely new to stata so I don't know if this is correct and if so what the table provided means. Is there anyone that can help? Help would be very much appreciated!
Thank You in advance!
I am trying to estimate markdowns which is the ratio of output elasticity in terms of labor over the wage. I was advised to estimate total factor productivity using Prodest for which I used the following line of code:
prodest log_va, free(log_labor) state(log_capital) proxy(log_material) valueadded met(op) poly(4) reps(40) id(firmid) t(year)
I am completely new to stata so I don't know if this is correct and if so what the table provided means. Is there anyone that can help? Help would be very much appreciated!
Thank You in advance!
