Individual differences |
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where is a non-parametric function.
Nadarya (1964) and Watson (1964) proposed to estimate as a locally weighted average, using a kernel as a weighting function. The Nadarya-Watson estimator is:
where is a kernel with a bandwith .
kernreg2 y x, bwidth(.5) kercode(3) npoint(500) gen(kernelprediction gridofpoints)
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