# creating 640 inefficiencies
library(truncnorm)

z1 = rnorm(640, mean=1, sd=0.10) 

z2 = rnorm(640, mean=-0.10, sd=0.20) 
z3 = rnorm(640, mean=6.30, sd=0.20) 
z4 = rnorm(640, mean=2.90, sd=0.20) 

mu =1.25 -0.40*z1 +0.05*z2 -0.09*z3 - 0.03*z4

ineff_sim = rtruncnorm(640, a=0.01, mean = mu, sd = 0.08)


error = rnorm(640,mean = 0, sd = 0.04)

# Giving each variable a name

x1 = data$x1
x2 = data$x2
x3 = data$x3
x4 = data$x4
x5 = data$x5
x6 = data$x6

q1 = data$q1
q2 = data$q2
q3 = data$q3
TREND = data$TREND
QUAD_TREND = data$QUAD_TREND
RE = data$RE
ID = data$ID
time = data$time



# Creating the dependent variable Y

Y = 2.25 + 0.80*x1  + 0.20*x2 - 0.98*x3 + 0.24*x4 + 0.55*x5 - 2.5*x6 + 0.02*q1 -0.05*q2 + 0.253*q3 + 0.009*TREND - 0.01*QUAD_TREND - ineff_sim + error + RE