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The distant variable in your dataset is constant and so is the logarithm of distance (as it should be). It is equal to 9.864766994, and not what you have in your Stata output. You've done something wrong.
Dear Joao and Eric,
Thank you for both of you. I will check my data and re-change it to the log form. I hope this time my way to change the data is right.
-Raisa-
I re-did my data and like both of you said something wrong with my way change the data to the log form. After I re-did it, I get the result not like in my statistic result before. *_* This is my data and after i change it to log form. It is indeed different with the statistic result before. -Raisa-
can I still input the distance in my model after OLS regression? lnE=27.85232 + 8.610551lnPOPi + 0.8550523lnGDPi - 0.1475834lnGDPc - 10.40047lnPOPc + 0lnDic + 0.255134ACFTA the equation will be like this right?
-Raisa-
No, you cannot. The Stata output is telling you that the distance variable is omitted (because it is a multiple of the constant). It is not telling you that the coefficient is equal to zero.
Another point: João told you above that the RESET was not a test of omitted variables. This is correct. It is Stata that leads you astray by calling the test ovtest and adding that the null hypothesis is "no omitted variables".
Is the coefficient value for distance is 0 in the result? So, it is not mean that the coefficient equal to 0 in the real? About the RESET test, Joao told me that test for the fitted model that we have.
The coefficient is zero in the sense that it is omitted, not in the sense that it is estimated to be zero. It would be better just to state that it is omitted because of collinearity.
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