Dear All,

I am working on estimating Debt-Growth Threshold but confused about some points. My questions are;

- How do we calculate initial GDP Per Capita? Shall we do it in STATA or excel file? Please explain with an example how do we calculate initial GDP PC?

- While estimating PSTR (Panel Smooth Transition Regression) many papers use different ways to estimate it for different country groups. Shall I go this way; first estimate linear equation of PSTR,-------> then calculate FIxed effects------> then calculate 2SLS-------> then calculate reduced form quadratic equation--------> Is this right way to estimate PSTR? Please guide step by step.

Thanks.

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