I am calculating TFP using OLS and I took sales as output, and (salaries of all workers, short term investment, stock trading in market, long term investment and net assets) as input. After running regression the results error term was calculated and a variable of tfp was calculated. The equation is as follows
gen tfp1 = lSales- (0.1041)*( lsalaries ) -(0.0230)*( lshort_inv )-(0.396)*( lstock_trading)-(-0.0080)*( lLong_inv)-(0.217)*( lnet_assets)
But the TFP comes out to be negative for a number of observations. Please help
gen tfp1 = lSales- (0.1041)*( lsalaries ) -(0.0230)*( lshort_inv )-(0.396)*( lstock_trading)-(-0.0080)*( lLong_inv)-(0.217)*( lnet_assets)
But the TFP comes out to be negative for a number of observations. Please help
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