Maximum likelihood

[Giorgio Di Stefano]

Dear all,

Please, I would like your help in the following problem that I have as a first post in the forum.

I have a panel of countries where there are the classic macroeconomic variables, such as GDP, etc and some continuous and distinct quality indicators.
In simple words, I have to create a new independent variable for each indicator in each period for which the current GDP is equal to the potential or the difference is minimized. Each indicator is independent and does not affect the other.

Most likely with Maximum likelihood estimation, or other method, where I have to find the value of each indicator, in each period, creating a new value for the indicator independently for which the volatility of GDP is zeroed or minimized. That is, the current GDP is equal to or close to the maximum with the potential, estimated with the HP filter
I hope it is understandable. Some of my details below

Thanks for any help. I am already for your inputs

Best
Giorgio

* Example generated by -dataex-. To install: ssc install dataex
clear
input float id int ts str48 country float(indicator1 indicator2) double GDP_current float(GPD_HP GDP_Trend GDP_gain GPD_angular)
1 1990 "United Kingdom"    30.468    16.809 1093169389204.55   12594491392 1.0805749e+12 .0394041 .28559932
1 1991 "United Kingdom"    30.468    16.809 1142797178130.51   38082850816 1.1047143e+12 .3865072 .57119864
1 1992 "United Kingdom"   28.6106 13.403038 1179659529659.53   48790659072 1.1308689e+12 .7486191   .856798
1 1993 "United Kingdom"      27.9      12.1 1061388722255.55 -105758187520 1.1671469e+12 .8952165 1.1423973
1 1994 "United Kingdom"      27.9      12.1 1140489745944.29  -88973582336 1.2294634e+12 .9484286 1.4279966
1 1995 "United Kingdom"      27.9      12.1    1341584345905   24772661248 1.3168117e+12 .9702576  1.713596
1 1996 "United Kingdom"      27.9      12.1 1415358814352.57    1409031680   1.41395e+12 .9804248 1.9991953
1 1997 "United Kingdom" 14.663176  5.227907 1559078258022.27   49479213056  1.509599e+12  .985604 2.2847946
1 1998 "United Kingdom"     8.072     1.806 1650172242464.39   5.74659e+10 1.5927063e+12 .9883389  2.570394
1 1999 "United Kingdom"     8.072     1.806 1682399288141.08   22264080384  1.660135e+12 .9896897  2.855993
1 2000 "United Kingdom"     8.072     1.806 1657816613708.58  -60127121408 1.7179438e+12  .990099  3.141593
2 1990 "United States"       29.4      14.9     5.963144e+12   84337139712  5.878807e+12 .0394041 .28559932
2 1991 "United States"       29.4      14.9     6.158129e+12  -39289442304  6.197419e+12 .3865072 .57119864
2 1992 "United States"       29.4      14.9     6.520327e+12   -9196966912  6.529524e+12 .7486191   .856798
2 1993 "United States"  13.382143  .0375137     6.858559e+12  -23772067840  6.882331e+12 .8952165 1.1423973
2 1994 "United States"       12.5     -.781     7.287236e+12   25660139520  7.261576e+12 .9484286 1.4279966
2 1995 "United States"       12.5     -.781     7.639749e+12  -29441933312  7.669191e+12 .9702576  1.713596
2 1996 "United States"       12.5     -.781     8.073122e+12  -38092492800  8.111215e+12 .9804248 1.9991953
2 1997 "United States"   8.977967 1.3458682    8577554463000  -11419578368  8.588974e+12  .985604 2.2847946
2 1998 "United States"      8.784     1.463    9062818211000  -34884067328  9.097702e+12 .9883389  2.570394
2 1999 "United States"      8.784     1.463    9630664202000    -140565792  9.630805e+12 .9896897  2.855993
2 2000 "United States"      8.784     1.463   10252345464000   76239831040 1.0176106e+13  .990099  3.141593
end
format %ty ts

[William Lisowski]

This topic was also posted in the General Forum, a more appropriate location. Anyone with help to offer should follow up in the General Forum at

https://www.statalist.org/forums/for...ood-maximising