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  • Mediation analysis for panel data with individual fixed effects (xtdpdml & gsem?)

    Dear all,

    I am working on strictly balanced panel data to evaluate individuals' activities on their health. To acquire a causal relationship, I intend to use the fixed-effects model and try to explore some mediators (say, MedVar1, MedVar2) between the dependent variable (health) and the independent variable (activities). I have a long dataset with three waves of data, and information is clustered within each individual with the following command:
    Code:
    xtset pid year
    My question is similar to a previous topic:
    https://www.statalist.org/forums/for...direct-effects
    Stephanie didn't seem to have her problem solved so I still need some help. In her post, Stephanie was advised to try xtdpdml command so I read the readings recommended by Richard Williams. While the readings well explained xtdpdml's advantages over SEM and xtabond commands, these readings didn't seem to instruct how to conduct mediation analysis. So my questions are:
    1) how to apply xtdpdml to mediation analysis?
    2) if xtdpdml is not appropriate, which command should I explore? (It seems that GSEM is sometimes recommended.)

    Any suggestion or comment will be sincerely appreciated,
    Vera

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