Statalist - Forums for Learning to Use the Forum Software https://www.statalist.org/forums/ Help with this forum en Sat, 06 Jun 2026 07:08:37 GMT vBulletin 60 images/misc/rss.png Statalist - Forums for Learning to Use the Forum Software https://www.statalist.org/forums/ Suggestion about my model https://www.statalist.org/forums/forum/forum-help/sandbox/1786241-suggestion-about-my-model Tue, 02 Jun 2026 00:19:25 GMT Hi everyone, I am an undergraduate economics student working on this model. I am posting here not just to get answers, but genuinely to learn and... Hi everyone,
I am an undergraduate economics student working on this model. I am posting here not just to get answers, but genuinely to learn and test my own understanding. Any feedback, criticism, or suggestions are welcome.
The primary objective of this model is to isolate and quantify the effect of meteorological drought on annual barley production. ΔCultivatedArea is included strictly as a control variable.
The empirical model is specified as follows:

Array
Where:
n=26(due to differencing of cultivatedarea
t= year PRODUCTION: Annual barley production (tonnes)
SPEI_7: 7-month SPEI index for August
ΔCultivatedArea: First difference of barley cultivated area (hectares)

What are the steps I should follow, in order, to properly estimate and validate this model?

So far I have completed the following steps:
  • ADF Unit Root Tests
  • Pearson Correlation Matrix (Multicollinearity Check)
  • OLS Estimation
  • Breusch-Godfrey Test (Autocorrelation)
  • Breusch-Pagan-Godfrey Test (Heteroskedasticity)
  • Jarque-Bera and Shapiro-Wilk Tests (Normality of Residuals)
  • Ramsey RESET Test (Functional Form)
]]> Sandbox Huseyin Gormus https://www.statalist.org/forums/forum/forum-help/sandbox/1786241-suggestion-about-my-model