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Estimations of Eq. (2) using more flexible specifications were also performed.
More flexible specifications did not improve model fit significantly.
25– 27 By using Stata's mfp command to suggest the best fit multivariable, fractional, polynomial model for each procedure, more flexible specifications of provider volume were explored to determine whether they improved the fit of the equation.
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This more flexible specification exceeds the limits of what we are able to estimate with any precision.
It seems, therefore, that analyzing changes in the stock of foreign nationals in Spain in the current situation needs a more flexible specification.
Table 10 in the Appendix allows for a more flexible specification of Eq. (1), where the program's effects are assumed to differ by year.
Nevertheless, the literature has focused on linear relations, but allowing for the possibility of transforming the data to have a more flexible specification.
The resistance variables in this first stage are distance splines, which is a much more flexible specification than its competitors (e.g. linear, logarithmic, quadratic) and explains the data clearly better than using continuous distance.
Additionally, it allows for a more flexible specification which we will explore in the second part of this section when we investigate the drivers behind the Beveridge curve shift.
We then release the above restrictions and estimate the more flexible specification shown in equation (1), which allows for differences in the returns to human capital between immigrants and natives and for differences in the returns to home and destination country work experience.
This model extends the above model by allowing a more flexible specification of the covariance matrix of the error terms.
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