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  • Calculating the turning point

    Hi,

    My name is Jan, and I would like to find the turning point for my regression. I looked at previous posts about this but was not able to find the specific code to use.

    If helpful here is the full regression I use reghdfe ln_bank_zscore L1.Lernerindex c.L1.Lernerindex#c.L1.Lernerindex L1.ln_gdp_per_capita L1.ln_bank_size L1.private_credit_to_gpd L1.Bankcapitaltototalassets L1.BankdepositstoGDP L1.Banknoninterestincometototal Bankingcrisisdummy L1.Bankreturnonassetsafter L1.Stockmarketturnoverratio L1.Inflatie, absorb(countrynum Year)

    Thank you in advance,


    Kind regards,

    Jan Krimpel

    Click image for larger version

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  • #2
    Jan:
    if -Lerner- is the predictor you're interested in, the formula for calculating the turning point is based on the first derivative (ie, -b/2a, where b=linear term).
    Hence, for model (1):
    Code:
    . di -(-1.0336/(2*3.3478))
    .15437003
    There's a way to create interaction more efficiently (ie, creating linear and square terms in just one shot):
    Code:
    c.L1.Lernerindex##c.L1.Lernerindex
    As an aside, please do not post screenshot, as they're impossible to copy and elaborate on quickly. Thanks.
    Kind regards,
    Carlo
    (Stata 16.0 SE)

    Comment


    • #3
      Thank you for your reply and the tip.

      Kind Regards,
      Jan Krimpel

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