Econometric Models, eviews

I just want to test the impact of government subsidies on the innovation ability of listed companies, whether positive or negative. So how should we select dependent variables, independent variables, control variables, etc.? And also use eviews or stata to build econometric models.

Referring to GPT and my own ideas, the following variables can be considered when analyzing the impact of government subsidies on the innovation ability of listed companies:

Government subsidies: Government subsidies are the focus of research and should be included in the model.

Firm size: Firm size may have an impact on the ability to innovate and should therefore be considered.

Firm age: Firm age may have an effect on innovation ability and should therefore be taken into account.

Industry type: Different industries have different innovation environments, so you should consider industry type.

Intellectual property: A company's ownership of intellectual property such as patents, trademarks, and Copyrights should be considered because they may have an impact on the ability to innovate.

R&D investment: Firm R&D investment is one of the important factors of innovation capability and should be taken into account.

Industry competition: Industry competition should be considered as it has an impact on firms' motivation and ability to innovate.

Ownership structure: Ownership structure should be considered as it may have an impact on a company's strategic decision-making and innovation capability.

Depending on the specific research purpose and data availability, other relevant factors may also be considered. It should be noted that, when building econometric models, it is necessary to consider the correlation between variables and possible endogeneity problems, and adopt appropriate methods for control.

Variables that should be considered include: 1. The amount of government subsidies; 2. Types of government subsidies; 3. Resource status of the enterprise; 4. Enterprise management level; 5. Market demand and competition; 6. Favorable degree of innovation environment; 7. The degree of policy incentives for innovation; 8. Innovative technology and its level of development; 9. Status of enterprise research and development resources; 10. Feasibility of innovation results.

This answer quotes ChatGPT

When analyzing the impact of government subsidies on the innovation ability of listed companies, the following variables may need to be considered:

Government subsidies: This is the core variable of the analysis. Differences in the amount, type and field of government subsidies need to be taken into account.

Innovation ability of listed companies: It is necessary to consider how to measure innovation ability of listed companies, such as R&D investment, patent number, technological innovation, etc.

Company size: Company size may affect innovation ability, and larger companies may have more resources for R&D and innovation.

Industry differences: Different industries may have different innovation capabilities and demand for government subsidies, so it is necessary to consider the influence of industry differences.

Market competition degree: Market competition degree may affect innovation ability and the demand for government subsidies, so it is necessary to consider the influence of market competition degree.

Other control variables: In addition to the above variable factors, it is also necessary to consider some other control variables that may affect the research results, such as the company's financial status, business strategy, etc.

The following factors should be considered in the selection of dependent variables, independent variables and control variables in the establishment of econometric model: First of all, it is necessary to clarify the research question and research purpose, and select dependent and independent variables related to the research question. 2. Theoretical basis: The theoretical basis is the basis for the establishment of econometric models, and dependent variables and independent variables related to the theoretical basis should be selected. 3. Data availability: The selection of dependent variables and independent variables related to the research problem should consider data availability, including data coverage, quality, time series, etc.
4. Previous studies: Knowing the results of previous studies can help determine which dependent and independent variables should be selected.
When determining the independent variables and control variables, the following points need to be paid attention to:
1. Avoid collinearity: When selecting the independent variables, pay attention to avoid the highly correlated situation between the independent variables, otherwise it will lead to the multicollinearity problem.
2. Variable measurement: When selecting independent variables, we should pay attention to whether the variable measurement is accurate and whether it reflects the factors to be studied.
3. Theoretical rationality: When selecting control variables, it is necessary to consider whether the relationship between variables, dependent variables and independent variables conforms to the theory.
4.
The establishment of econometric model requires specific selection according to the specific situation, which can be assisted by literature research, expert consultation and other ways to select independent variables and control variables. When using software such as Eviews or Stata to build models, it is necessary to be familiar with the operating methods and modeling steps of the software to ensure the accuracy and effectiveness of the models.

I can only give you suggestions. Specifically, you can refer to these points to pay attention to and choose

How to select dependent variables, independent variables, control variables, etc. I only need to build the basic econometric model, using eviews or stata to build, mainly is not very clear about the selection of variables.