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  • #16
    I am still a little bit confused. How would I check for endogeneity in my model? Do I do the Ramsey Reset Test?
    (but when I try to check for omitted variable bias, the command -ovtest- works only after -regress-)

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    • #17
      .

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      • #18
        Priya:
        see reply #3 at the thread I previously referred you to.
        Kind regards,
        Carlo
        (StataNow 18.5)

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        • #19
          When the Hausman Specification Test is conducted. The null states that there is no correlation between the errors and the regressors. hence when the p-value is high, we fail to reject the null. SO there is a possibility that there is no endogeniety, so the houseman test suggest that we use the RE model right?

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          • #20
            Priya:
            what you mentioned is not the null that -hausman- considers when comparing -fe- vs -re- specification.
            Take a look at -hausman- entry in Stata .pdf manual (and related references) for more details.
            Kind regards,
            Carlo
            (StataNow 18.5)

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            • #21
              And does the chi2 statistic determine the overall significance of the model?

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              • #22
                Priya:
                if you refer to -xtreg,re-, you're right.
                Kind regards,
                Carlo
                (StataNow 18.5)

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