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