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  • Calculating long and short term elasticities post Xtabond2


    I am estimating a dynamic model using xtabond2. My dataset has 268 panels for 46 years (its a balanced panel however for some independent variables there are few observations that are missing)
    I use the following code
    xtabond2 logwheatph l(1/2).logwh logl L.logl logf L.logf logt L.logt loga L.loga logr logirr L.logirr sid L.sid c.logr#c.logirr c.lograbi#c.sid c.logr#cL.logirr cL.lograbi#c.sid, gmm(logl logf logt loga L.logirr L.sid) iv(logr) robust small
    Where logl logf logt loga are the predetermined variables, logirr and sid are endogenous variables and logr is exogenous I want to calculate the short run and long run elasticites. I am not sure how to do that I went through earlier posts that mention that lincom and testnl can be used to derive the long term elasticity but I am still confused. Am i correct in understanding that using the margins command [margins, dydx(.)] will give the short term elasticity and using lincom/testnl will provide the long term elasticity?? Appreciate your help
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