* to estimate VAT take-up as a probit or logit
* generates Table 1 in first version submitted to JDE 

set mem 20m

use "C:\Users\Ben Lockwood\Documents\researchpapers\KeenVATproject\dofiles\JDErevision\VAT.dta", clear

set mat 800

* generate additional variables needed

tsset cnumber year

gen lnry=ln(ry)
gen lnry1 = L.lnry
gen ry1 = L.ry
gen lnypcppp=ln(ypcppp)
gen fv1 = L.fv
gen v1 =L.v
gen imf = imfcr+imfncr
gen lnpop=ln(pop)

* estimate on full data-set

* to estimate on truncated data-set use: 
* drop if v[_n]==1 & v[_n-1]==1 & (country[_n]==country[_n-1])
* drop if v[_n]==0 & v[_n-1]==1 & (country[_n]==country[_n-1])

drop if dcrbo==1
* drop if year < 1975

log using probit, replace

*dprobit v  lnypcppp open ag, r  
*outreg using table1, br replace

dprobit v  lnypcppp open ag v1, r 
outreg using table1,  replace
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2

dprobit v   lnypcppp open ag v1 lnpop depold depyoung fed fv1 imfcr imfncr ry1, r
outreg using table1,  merge
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2

probit v   lnypcppp open ag v1 lnpop depold depyoung fed fv1 imfcr imfncr ry1, r
outreg using table1,  merge
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2


dprobit v  lnypcppp open ag  v1 lnpop depold depyoung fed fv1 imfcr imfncr ry1 daf dap das dcrbo dnmed dsi, r
outreg using table1,  merge
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2


dprobit v   lnypcppp open ag v1 lnpop depold depyoung fed fv1 imfcr imfncr ry1, cl(year)
outreg using table1,  merge
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2


dprobit v   lnypcppp open ag v1 lnpop depold depyoung fed fv1 imfcr imfncr ry1, cl(cnumber)
outreg using table1, merge
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2


probit v  lnypcppp open ag  v1 depold depyoung fed fv1 imfcr imfncr ry1, r
outreg using table1,  merge
gen pseudor2=e(r2_p)
list pseudor2 if _n==1
drop pseudor2


ivprobit v  lnypcppp  ag  v1 ry1 fv1 imfcr imfncr depold depyoung fed (open=lnpop), r
outreg using table1iv, merge


* to perform Hausman test

est store ivreg

quietly probit v open lnypcppp  ag  v1 ry1 fv1 imfcr imfncr depold depyoung fed , r
hausman ivreg ., eq(1:1)

log close 

translate probit.smcl probitWEOtrunc.txt, replace

clear