Sunday, July 18, 2010

Panel Data Treatment

Stata Panel Data Functions
  1. xtreg ..., re/fe
  2. xtabond (does not allow time-invariant variables)
  3. xthtaylor ... end(...) varying(...) no constant
Othe issues
  • Unbalanced Panel: make it balanced by Zeroing out/Compression.
  • Dynamic Panel: serial correlation.
  • Random vs. Fixed: Hausmen Test Significant P-value indicating the use of Fixed Effect.
  • Independent Variables: Endogenous vs. Exogenous, Time Variant vs. Time Invariant

Correlation Test Statitics in STATA

  • To generate p-value, use "pwcorr 1 2 3 ... sig star/print(.05)". Null Hypothesis H0: Rho = 0 Variables 1 and 2 are not related. Alternative Ha: Rho not equal to 0

No comments:

Post a Comment