Dear All,
I am trying to estimate a Production Function at firm level augmented with different dimensions of territorial variables (e.g human capital, social capital, infrastructure etc.)
I have more than 20 territorial variables and I would like to synthesize them using the principal component analysis. In particular I would like to calculate different components for intangible and tangible territorial characteristics to be incorporated in the firms'production function.
My question are:
-can apply Principal Component Analysis if my data are in form of panel?
Is the stata syintax the same for cross sectional data?
pca var1 var2 var3...
-can I calculate the principal components of the natural logarithmic of these variables (to be included in the production function) or should I use the original variables?
Thanks a lot for your response
Valentina
I am trying to estimate a Production Function at firm level augmented with different dimensions of territorial variables (e.g human capital, social capital, infrastructure etc.)
I have more than 20 territorial variables and I would like to synthesize them using the principal component analysis. In particular I would like to calculate different components for intangible and tangible territorial characteristics to be incorporated in the firms'production function.
My question are:
-can apply Principal Component Analysis if my data are in form of panel?
Is the stata syintax the same for cross sectional data?
pca var1 var2 var3...
-can I calculate the principal components of the natural logarithmic of these variables (to be included in the production function) or should I use the original variables?
Thanks a lot for your response
Valentina