*! version 0.1 10may2021

leedtwoway Two way models for labor

Syntax

leedtwoway , config(string) [env(string)]

Description

leedtwoway runs two way estimators for labor. The package provides implementations for a series of estimators for models with two sided heterogeneity:

1. two way fixed effect estimator as proposed by Abowd Kramarz and Margolis
2. homoskedastic bias correction as in Andrews et al
3. heteroskedastic correction as in KSS
4. a group fixed estimator as in BLM
5. a group correlated random effect as presented in BHLMMS

This package requires the Python package PyTwoWay.

Estimators are specified in the namelist. Options include specifying a configuration file (required) and Conda environment (optional).

Note that a temporary file leedtwoway_temp_data.dta is created prior to running the Python script. It is deleted after the script finishes.

Authors

Thibaut Lamadon

University of Chicago

lamadon@uchicago.edu

Adam A. Oppenheimer

University of Chicago

oppenheimer@uchicago.edu

Dependencies

leedtwoway depends on libjson and insheetjson. It also requires the Python package PyTwoWay.

Options

config(string) is required. It specifies the configuration file.

env(string) is optional. It specifies the Conda environment where PyTwoWay is installed.

Examples

Run FE

. sysuse leedtwoway_sample_data

. leedtwoway fe, config("config.txt") env("stata-env")

Run CRE

. sysuse leedtwoway_sample_data

. leedtwoway cre, config("config.txt") env("stata-env")

Run FE and CRE

. sysuse leedtwoway_sample_data

. leedtwoway fe cre, config("config.txt") env("stata-env")