Hello,
I'm working on a model with R&D intensity (R&D divided by sale) as the dependent variable. Values in my panel for this variables range from 0 to about 1.5. I have the following questions:
Would xtreg give me unreliable estimation for this dependent variable?
Would glm with a link (such as log) and another distribution family (such as poisson) be preferable to xtreg even if using xtreg is not technically incorrect?
Also, expanding the above questions, what if I have a non-negative dependent variable that ranges, say, from 0 to 2500 (e.g. R&D expenditure)?
Would the appropriateness of using either xtreg or a glm model change from the above scenario at all?
Many thanks in advance for your help.
I'm working on a model with R&D intensity (R&D divided by sale) as the dependent variable. Values in my panel for this variables range from 0 to about 1.5. I have the following questions:
Would xtreg give me unreliable estimation for this dependent variable?
Would glm with a link (such as log) and another distribution family (such as poisson) be preferable to xtreg even if using xtreg is not technically incorrect?
Also, expanding the above questions, what if I have a non-negative dependent variable that ranges, say, from 0 to 2500 (e.g. R&D expenditure)?
Would the appropriateness of using either xtreg or a glm model change from the above scenario at all?
Many thanks in advance for your help.
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