Reading report 182 by Institute for replication:
« While demand estimates perfectly replicate, the production function estimates of Hong and Luparello (2024) differ slightly from those in Orr (2022) to the second decimal.
Hong and Luparello (2024) argue this due to numerical instability of STATA’s matrix inversion when recovering marginal cost, which I believe is correct.
The documentation for the particular command used for the marginal cost inversion — luinv in STATA — notes that different computers can give different results when a matrix is close to singular. »
Ok, now I would like to inspect the numerical method behind ’luinv’.
Doc reads « This function uses the MKL LAPACK by default. » … but for some cases Netlib LAPACK could also be used. Hum?!
Which LAPACK version? Compiled using which options? In other words, which computational environment?
https://i4replication.org
https://www.stata.com/manuals/m-5luinv.pdf