Is higher constant a problem?

[Vina Javed Khan]

I am using tobit regression, and getting higher constant like in thousands sometimes, so is that a problem?

[Carlo Lazzaro]

Vina:
how coud interested listers help you out without reading what you typed and what Stata gave you back (as per FAQ?). Thanks.

[Vina Javed Khan]

Hi Carlo,
i run tobit command where labour productivity (lab_prod_w) is my dependent variable, heat spell intensity (heatspellintensity) is independent variable. Assuming the non linear relation between these two, I have added the "heatspellintensity2" in equation. Remaining are control variables.

 tobit lab_prod_w heatspellintensity heatspellintensity2 capex leverage rnd_int net_sales_growth_w firm_size tangibility cash_flow ppt ext_cold i.year i.gics_sector, ll ul vce(robust)

 
lab_prod_w
Coef.
Std. Err.
t
P>t
[95% Conf.
Interval]





heatspellintensity
-13.18602
6.680266
-1.97
0.049
-26.29659
-.0754387

heatspellintensity2
.0734995
.0383237
1.92
0.055
-.0017139
.1487129

capex
-.1943286
.5664526
-0.34
0.732
-1.306039
.9173817

leverage
.1355885
.0690691
1.96
0.050
.0000347
.2711424

rnd_int
-23.83007
34.45577
-0.69
0.489
-91.45237
43.79224

net_sales_growth_w
.045155
.1076004
0.42
0.675
-.1660196
.2563297

firm_size
5.014577
1.138766
4.40
0.000
2.779653
7.2495

tangibility
30.64537
13.98558
2.19
0.029
3.197504
58.09324

cash_flow
-65.50843
35.50587
-1.85
0.065
-135.1916
4.174788

ppt
1.706593
.5259678
3.24
0.001
.674338
2.738849

ext_cold
-.181953
.1086101
-1.68
0.094
-.3951094
.0312034



year

2016
2.758286
4.571604
0.60
0.546
-6.213866
11.73044

2017
.2424725
4.575116
0.05
0.958
-8.736573
9.221518

2018
4.249714
4.474573
0.95
0.342
-4.532007
13.03143

2019
6.076801
4.456691
1.36
0.173
-2.669825
14.82343

2020
4.413188
4.634802
0.95
0.341
-4.682994
13.50937

2021
9.274822
4.758365
1.95
0.052
-.063863
18.61351



gics_sector

15
-48.13122
13.54386
-3.55
0.000
-74.71218
-21.55027

20
-63.88068
13.77846
-4.64
0.000
-90.92204
-36.83931

25
-71.61556
13.64848
-5.25
0.000
-98.40183
-44.82929

30
-54.84009
13.90908
-3.94
0.000
-82.13781
-27.54237

35
-57.45664
13.63758
-4.21
0.000
-84.22151
-30.69176

45
-69.7407
13.80484
-5.05
0.000
-96.83383
-42.64756

55
-128.4664
20.85799
-6.16
0.000
-169.402
-87.53091



_cons
583.0443
278.7968
2.09
0.037
35.88243
1130.206

This is my panel data for S&P500 firms. Help me in this high constant term,

[Carlo Lazzaro]

Vina:
I'm under the impression that your model is poorly specified:
In addition, constant does not look that impressive.
For the future, as per FAQ, please ude CODE delimiters to dhare what you typed and what Stata gave you back (number of observations included). Thanks.