How to plot a Cubic polynomial function?

[yann]

Hello
I've run a panel Fixed Effects model, and i would like to make a graph which detail a part of my result:

fe_model <- plm(formula =invest~lag(debt)+lag(I(debt^2))+ lag(I(debt^3))+bcour+gvex+tradeop,data = DataN, model = "within",index = c("country","year"))
``
Coefficients:
                  Estimate  Std. Error t-value  Pr(>|t|)    
lag(debt)       -0.0913478  0.02180357  6.1512 2.517e-09 ***
lag(I(debt^2)) 0.002783274  0.00010127 -5.7105 2.762e-08 ***
lag(I(debt^3))  -0.0000192  0.01620570  1.2259   0.22120 ***    
bcour           0.23662511  0.03926279  6.0267 5.018e-09 ***
gvex           -0.52866311  0.12588780 -4.1995 3.553e-05 ***
tradeop        -3.57865159  1.58891292 -2.2523   0.02505 *  

[/quote]

What i want, its to plot (graph) the cubic relation between invest and debt by using each debt coefficients foud in my Fixed Effect model:

plot : invest~lag(debt)+lag(I(debt^2))+ lag(I(debt^3))

Any ideas please?

[FJCC]

Have you tried using the predict() function? You would need to make a data frame, let's call it NewDF, containing various values of debt and fixed values of bcour, gvex, and tradeop. Then you could get predicted values of invest with

NewDF$PredInvest <- predict(fe_model, newdata = NewDF)

I have never used plm but I think that will work. You can then plot with

library(ggplot2)
ggplot(NewDF, aes(x = debt, y = PredInvest)) + geom_line()

[yann]

Hi @FJCC, Thanks for your help. Did you please try with your own data for example?In fact i've tried this but i could not make a plot due to the below error message ;

ggplot(d.NewDFf, aes(x = debt, y = PredInvest)) + geom_line()
Error in FUN(X[[i]], ...) : objet 'debt' introuvable

The message means it couldn't found the debt object.
So, i don't know if you foud the same issu?

[FJCC]

Does d.NewDFf contain a column named debt? You can check this with

colnames(d.NewDFf)

It should contain the debt values that were used to generate PredInvest. Can you show the code you used to generate PredInvest?

[yann]

Yes, kindly see here below the details;

#change my data to data.fram#
DataBN.p = data.frame(DataBN,index = c("country","year"))
#model regression#
fe_model=plm(formula =PredInvest~lag(debt)+lag(I(debt^2))+ lag(I(debt^3))+bcour+gvex+tradeop,data = DataBN.p, model = "within",index = c("country","year"))
summary(fe_model)

#create a variable for predict model (fe_model) result#
NewDFf <- predict(fe_mod, Data = NewDF)
library(ggplot2)
#create a data.frame ton contain predict#
d.NewDFf = data.frame(NewDFf)
ggplot(d.NewDFf, aes(x = debt, y = PredInvest)) + geom_line()

The colnames(d.NewDFf) doesn't contain a a column named debt. And you are right, i think it doesn't work perhaps because the column is empty.
Regards,

[FJCC]

The step you are missing is putting data in NewDF. I do not know what kind of debt you a dealing with so I will assume personal debt and I will put values from 0 to 500,000 in NewDF and set bcour, gvex, and tradeop to 1. You will have to adjust all of that to use appropriate numbers.

NewDF <- data.frame(debt = seq(0, 500000, 50000), bcour = 1, gvex = 1, tradeop = 1)
NewDF$PredInvest <- predict(fe_model, newdata = NewDF)

You should then be able to plot the result.

[yann]

Yes, now it seems working well.
Thanks you dear @FJCC for your kind assistance.