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  • What are the functional form of the fixed-effects regression, random-effects regression and pooled regression?

    Good morning to the community Stata.

    I wrote that the functional form of the fixed-effects regression was:
    Y_it=α_i+ 〖X'〗_it β+ε_it

    I wrote that the functional form of the random-effects regression was:
    Y_it=〖X'〗_it β+( α_i+v_(it ) )

    I wrote that the functional form of the pooled regression was:
    Y_it=β_0+ 〖X'〗_it β+u_it

    Is that correct?

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    Last edited by Lucas Bordure; 15 Jun 2021, 02:44.

    Lucas BORDURE
    Student MSc. in International Finance
    Rennes School of Business
    Stata SE 16.1
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