Nonlinear Regression Functions using STATA

[@mamtachaudhary5563]

Thank you so much for coming up with this channel... please keep updating informative videos on STATA

[@ZahidAsghar]

Thank you, I will

[@IFHAMAKBARBERLIAN]

Execuse me sir, why the non linear variable must be multiplied up to three times? isn't it quadratic only twice?

[@ZahidAsghar]

Can you please provide little more details about your query?

[@IFHAMAKBARBERLIAN]

@@ZahidAsghar Sorry for my short of knowledge. In the transformation variable, I see that avginc2 = avginc*avginc, then avginc3 = avginc*avginc2. It means 3 times right? Should I take the steps like that? especially for my research.

[@ZahidAsghar]

@@IFHAMAKBARBERLIAN Actual comparison is between linear, quadratic and cubic model. So if we just regress on "avginc" it means a linear in variable model, if we regress on avginc and avginc2, its quadratic. And if we regress on avginc, avginc2, avginc3, its a cubic model. Then we compare and tie is between quadratic and cubic. But cubic term is not siginficant so we decide in favor of quadratic

[@ZahidAsghar]

To generate , quadratic : either gen avginc2=avginc*avginc and use avginc2 as quadratic or one can simply multiply twice for quadratic wihtout generating it. Similarly for cubic. Fortunately in social sciences we hardly need more than cubic model, so dont apply higher degree polynomials. But in engineering discipline this may be very high degree polynomial.

[@ZahidAsghar]

I hope I have now explained the issue. If not please feel free to contact.

[@asharawan3181]

Thank You Sir!

[@ZahidAsghar]

Most welcome!

[@econometricandstatisticala8020]

Amazing information, thank you sir

[@IrfanAli-ww8ed]

Its informative. But the title is misleading, sorry to say!

[@ZahidAsghar]

Its in continuation to previous videos. Ch4 ,5 6 and 7 are simple and multiple linear while this chapter 8 from Stock and Watson is with this title. If you can suggest some , I ll consider

[@dr.shahzadmushtaq2078]

Good video

[@ZahidAsghar]

Glad you enjoyed

[@dr.shahzadmushtaq2078]

Good video