add elasticity - Primitive DID #20

script/stata/elasticity.do

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+
+* directory
+cd "C:\Users\vge00\Desktop\nastab"
+
+* call shaped data.
+* This data is made by R. I will replace latter.
+use "data\shapedt.dta", clear
+
+* variables
+gen price = .
+replace price = 1 - mtr if year < 2014
+replace price = 1 - 0.15 if year >= 2014
+
+gen log_price = ln(price)
+gen log_total_g = ln(total_g + 1)
+gen log_pinc_all = ln(pinc_all + 100000)
+
+gen extensive = .
+replace extensive = 1 if total_g > 0
+replace extensive = 0 if total_g == 0
+
+* panel data
+xtset pid
+
+/*
+Full model
+*/
+
+* Intensive margin
+xtreg log_total_g log_price log_pinc_all i.year if total_g > 0, ///
+	fe vce(cluster pid)
+
+* Extensive margin
+xtreg extensive log_price log_pinc_all i.year, ///
+	fe vce(cluster pid)
+
+/*
+use data year > 2011 
+because marginal tax rate in 2012 is same as in 2013
+*/
+
+* Intensive margin
+xtreg log_total_g log_price log_pinc_all i.year if total_g > 0 & year > 2011, ///
+	fe vce(cluster pid)
+
+* Extensive margin 
+xtreg extensive log_price log_pinc_all i.year if year > 2011, ///
+	fe vce(cluster pid)
+
+
+/*
+use data year == 2013 and 2014
+Pure DID?
+*/
+
+* Intensive margin
+xtreg log_total_g log_price log_pinc_all i.year ///
+	if total_g > 0 & 2015 > year & year > 2012, fe vce(cluster pid)
+
+* Extensive margin 
+xtreg extensive log_price log_pinc_all i.year ///
+	if 2015 > year & year > 2013, fe vce(cluster pid)
+
+