Dear Statalist Forum users,
I am estimating the relationship between an organizational policy (X) and an organizational performance outcome (Y).
I have unbalanced panel data, with observations of X in 2002, 2004, 2008, and 2012 with observations of Y in each year from 2001-2013.
Currently, I run two separate models: a fixed effects model with X predicting Y in year (t+1) and a random effects model predicting the presence of X from Y in year (t-1). Both models include similar control variables and I have chosen fixed vs. random effects for theoretical reasons.
Someone suggested that I should perhaps use simultaneous equation models instead of modeling the two separately given that I expect a reciprocal relationship. What Stata command should I investigate further? I'm also unsure what the advantage of doing this would be and whether it makes sense to do this given the odd structure of the dataset. I have tried to omit irrelevant details but am happy to explain further if helpful. I have found a few topics on this but had a hard time applying them to my specific situation. Any advice is, as always, much appreciated.
-Matt
I am estimating the relationship between an organizational policy (X) and an organizational performance outcome (Y).
I have unbalanced panel data, with observations of X in 2002, 2004, 2008, and 2012 with observations of Y in each year from 2001-2013.
Currently, I run two separate models: a fixed effects model with X predicting Y in year (t+1) and a random effects model predicting the presence of X from Y in year (t-1). Both models include similar control variables and I have chosen fixed vs. random effects for theoretical reasons.
Someone suggested that I should perhaps use simultaneous equation models instead of modeling the two separately given that I expect a reciprocal relationship. What Stata command should I investigate further? I'm also unsure what the advantage of doing this would be and whether it makes sense to do this given the odd structure of the dataset. I have tried to omit irrelevant details but am happy to explain further if helpful. I have found a few topics on this but had a hard time applying them to my specific situation. Any advice is, as always, much appreciated.
-Matt
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