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  • spxtregress with unbalanced panel data

    Dear Statalist members,

    How would be possible to use spxtregress with unbalanced panel data?

    I'm currently using a sample of firms for 3 years, with the coordinates for each one, and without assuming a shapefile. However from one year to the other, there are certain firms that enter in the sample, and others that exit. According with STATA 15 material, I should consider the last year matrix since it is assumed that location is the same in both years.

    My problem is that imposing a balanced panel of firms that exist in the 3 years lead to a reduction of 20% in my sample, which is in fact relevant.

    Thank you in advance.

  • #2
    Unfortunately, the answer is: You cannot use spxtregress with an unbalanced panel because it would require a different spatial weights matrix for every year. As far as I know there is also no other Stata command that would be a feasible alternative.

    There are also more theoretical concerns about unbalanced panels due to sample selection. In such spatial panels, this raises the question how to standardize the weights matrices for the different years in a consistent way such that the weights remain comparable across years.
    Last edited by Sebastian Kripfganz; 13 Oct 2019, 05:01.