I am currently working on something similar that Hausman, Pritchett and Rodrik did in the famous paper: Hausmann, Ricardo, Lant Pritchett, and Dani Rodrik. "Growth accelerations." I am having troubles working with spline regressions since I had no exposure to those thus far. I am using the same criteria for identify growth accelerations as they did. They looked for rapid growth episodes that satisfy the following conditions.

(1) gt,t+n ≥ 3. 5 ppa, growth is rapid,

(2) gt,n ≥ 2. 0 ppa, growth accelerates,

(3) yt+n ≥ max{yi }, i ≤t , post-growth output exceeds pre-episode peak.

According to Hausman at al, "since for some countries there are a number of consecutive years for which these criteria of a growth episode are met, the “best” starting date is chosen by looking for the best fit among all contiguous eligible dates." The timing of the initiation of the growth acceleration is chosen by finding the year that maximizes the F -statistic of a spline regression with a break at the relevant year. I have read a lot on mkspline but one of the problems is that I want to tell Stata to choose the knots instead of assigning them myself.

I am sorry if the question is too broad, I am overall struggling with figuring out how to code this in Stata and any help would be much appreciated.

(1) gt,t+n ≥ 3. 5 ppa, growth is rapid,

(2) gt,n ≥ 2. 0 ppa, growth accelerates,

(3) yt+n ≥ max{yi }, i ≤t , post-growth output exceeds pre-episode peak.

According to Hausman at al, "since for some countries there are a number of consecutive years for which these criteria of a growth episode are met, the “best” starting date is chosen by looking for the best fit among all contiguous eligible dates." The timing of the initiation of the growth acceleration is chosen by finding the year that maximizes the F -statistic of a spline regression with a break at the relevant year. I have read a lot on mkspline but one of the problems is that I want to tell Stata to choose the knots instead of assigning them myself.

I am sorry if the question is too broad, I am overall struggling with figuring out how to code this in Stata and any help would be much appreciated.

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