Graphs for panel data

[Anna-Laura Jermann]

I like to do some summary statistic with panel data and like to illustrate some points.
When I use the command below, then I get a nice graph. But as my panle data set contains YR (2004-2014) over 1001 Firms I am not sure how I should interprete the reported LEV (Leverage by Firm) . Is this a mean or how is it calculatet? I haven't found any thing in the internet. Or can i only use the the xtline command for panels?

histogram LEV, normal by(IND)

Many thanks

[Aaditya Dar]

Hi Anna,

The histograms show the distribution of the entire data (all observations are pooled) and using the -by- option shows you the distribution separately for each IND (industry?). If you would like to specifically calculate the mean, see -help xtsum- which allows the -by- option. It will be helpful if you set your data as a panel using -xtset- before running -xtsum-.

[Carlo Lazzaro]

Anna:
the superimposed green line tells you also that the distribution of LEV across INDUSTRY is far from being normal (as it often happens with real-world data; economic data are no exception to this rule). Hence, a distribution like Gamma fits them appropriately.