Which model would you recommend to use? Panel Data

[Denis Mokrensky]

Hi all,
I do my University work and need your help.
I have a panel data and want to know how 10 independent variables will affect dependent variable #1 and dependent variable #2.
4 of 10 independent variables are factor variables (distances between 2 points which are constant in time).

According to tests (1. Wald test; 2. Breusch-Pagan Test; 3. Hausman test) I want choose a Fixed Effect Model.
Could you advice me:
1. Am I right that I've chosen this type of tests to choose model type? Which tests can you advice to do additionally?
2. What is your opinion regarding using Fixed Effect Model in this case?
3. Is it ok to use 4 factor variables in a Fixed Effect Model with only 10 independent variables in total?

Thank you very much!

[Carlo Lazzaro]

Denis:
as per FAQ, you should have already read that questions concerning school/home assignments are not welcomed on this forum.
As such, I will reply to Stata and statistics-related queries, in general terms:
1) you're correct in testing via -xtest0- and -hausman- if the -fe- or the -re- specification are ok for your panel data regression;
2) I do not know of any Stata commands that can handle multivariate panel data regression (ie, panel data regression with 2 or more regressands);
3) I have no opinion about using -fe- vs -re- for your research. The correct specificaion depends on your data and the customary methodological rules/habits in your research field;
4) I see no a priori issue in using 4 categorical variables out of 11 predictors in the righ-hand side of your regression equation.

[Denis Mokrensky]

Denis:
as per FAQ, you should have already read that questions concerning school/home assignments are not welcomed on this forum.
As such, I will reply to Stata and statistics-related queries, in general terms:
1) you're correct in testing via -xtest0- and -hausman- if the -fe- or the -re- specification are ok for your panel data regression;
2) I do not know of any Stata commands that can handle multivariate panel data regression (ie, panel data regression with 2 or more regressands);
3) I have no opinion about using -fe- vs -re- for your research. The correct specificaion depends on your data and the customary methodological rules/habits in your research field;
4) I see no a priori issue in using 4 categorical variables out of 11 predictors in the righ-hand side of your regression equation.

Dear Carlo,
First of all thank you for you kind help. Maybe I wrote incorrectly (sorry for my english), I write dissertation (PhD work) in University and from FAQ I understood that this is ok to write here regarding this.
Comment regardind 2nd question. On my picture I highlined 2 dependent variables only for information because I have 2 different tasks in my research. So in Stata I use standard command for first panel data regression with 1 dependent variable and then for second panel data regression with 1 dependent variable.
Thank you very much!

[Carlo Lazzaro]

Denis:
1) It was not that clear (to me, at least) what you were doing for your academic achievements: now it's clearer, thanks.
For more helpful replies, you should post what you typed and what Stata gave you back, along with na excerpt/example of your dataset (via -dataex-).