[Neharika Sobti]

Thank you sir for the clarification. I want to know how to perform Hausman test adjusted for Cross Sectional dependence as mentioned in Stata Journal xtscc -

qui xtreg logBA logaVol logSize logTRMS2 logTRMS, re
. scalar lambda_hat = 1 - sqrt(e(sigma_e)^2/(e(g_avg)*e(sigma_u)^2+e(sigma_e)^2))
. gen in_sample = e(sample)
. sort ID TDate
. qui foreach var of varlist logBA logaVol logSize logTRMS2 logTRMS {
. by ID: egen `var'_bar = mean(`var') if in_sample
. gen `var'_re = `var' - lambda_hat*`var'_bar if in_sample // GLS-transform
. gen `var'_fe = `var' - `var'_bar if in_sample // within-transform
. }
. * Wooldridge's auxiliary regression for the panel-robust Hausman test:
. reg logBA_re logaVol_re logSize_re logTRMS2_re logTRMS_re logaVol_fe logSize_fe logTRMS2_fe logTRMS_fe if in_sample, cluster(ID)
(output omitted )
. * Test of the null-hypothesis ``gamma==0'':
. test logaVol_fe logSize_fe logTRMS2_fe logTRMS_fe
( 1) logaVol_fe = 0
( 2) logSize_fe = 0
( 3) logTRMS2_fe = 0
( 4) logTRMS_fe = 0
F( 4, 218) = 2.40
Prob > F = 0.0510

. xtscc logBA_re logaVol_re logSize_re logTRMS2_re logTRMS_re logaVol_fe logSize_fe logTRMS2_fe logTRMS_fe
> if in_sample, lag(8)
(output omitted )
. test aVol_fe Size_fe TRMS2_fe TRMS_fe
( 1) aVol_fe = 0
( 2) Size_fe = 0
( 3) TRMS2_fe = 0
( 4) TRMS_fe = 0
F( 4, 218) = 1.65
Prob > F = 0.1632

I am not able to run this code? As everytime i run the it comes invalid name as error . What is sample in this code? And is it fine if all my variables both dependent and independent variables are in log form? Kindly guide what is wrong with code?

[Eric de Souza]

Kindly produce the output you get.

[Neharika Sobti]

Sir I am just getting the error
.invalid names

[Jeff Wooldridge]

As Eric said, you have to show us much more.

[Juny Benoit]

Hi dear member,
I am a beginner in the use of foreach. I need help to execute this code:

foreach var in eyrs_mf nostu_mf asr_mf {
gen d10_`var' = `var' - L10.`var'
su d10_`var' if year==2015, countrynumber
sort d10_`var'
scalar p50d`var' = `r(p50)'
scalar p75d`var' = `r(p75)'
}

When I execute the code above, I get the following error message:

. foreach var in eyrs_mf nostu_mf asr_mf {
2. gen d10_`var' = `var' - L10.`var'
3. su d10_`var' if year==2015, countrynumber
4. sort d10_`var'
5. scalar p50d`var' = `r(p50)'
6. scalar p75d`var' = `r(p75)'
7. }
not sorted
r(5);

end of do-file

r(5);

my variables are ranked from 1950 to 2015 with missing data. Even when I try to sort using "bysort countrynumber eyrs_mf nostu_mf asr_mf: list wbcode" I always get the same error message. Thanks for your help

[Carlo Lazzaro]

Juny:
please repost your query with an informative and different title, as it has nothing to do with the queries/replies included in this thread. Thanks.

[Olive Bat]

Hi.. Jeff.. does SUR model solve the issue of endogneity in a cross sectional data..please reply as soon as possible