Hello,
I'm trying to Hausman test to know whether should I go with FE or RE. I have a strongly balanced paneldata from 1985-2020 with 210 countries. Using the same test with regular SE, the test stated that I need to go with FE, but I just realised that since I'm using Robust I need to re-do the test differently. I've been reading different answers here but my knowledge of stata is quite decent. I'm refering to this thread here. Problems with panel regression model (specifically xtoverid, predicor collinearity) - Statalist where Carlo Lazzaro mentioned that using xtoverid after xtreg with a xi: prefix worked and gave an example when I did that it says: xtoverid not compatible with xtreg model fe
I'm trying to Hausman test to know whether should I go with FE or RE. I have a strongly balanced paneldata from 1985-2020 with 210 countries. Using the same test with regular SE, the test stated that I need to go with FE, but I just realised that since I'm using Robust I need to re-do the test differently. I've been reading different answers here but my knowledge of stata is quite decent. I'm refering to this thread here. Problems with panel regression model (specifically xtoverid, predicor collinearity) - Statalist where Carlo Lazzaro mentioned that using xtoverid after xtreg with a xi: prefix worked and gave an example when I did that it says: xtoverid not compatible with xtreg model fe
Code:
. xi: xtreg PT RND_L1 LVG EX GI RER EDU i.year, fe i.year _Iyear_1985-2020 (naturally coded; _Iyear_1985 omitted) note: _Iyear_1986 omitted because of collinearity. note: _Iyear_1987 omitted because of collinearity. note: _Iyear_1988 omitted because of collinearity. note: _Iyear_1989 omitted because of collinearity. note: _Iyear_1990 omitted because of collinearity. note: _Iyear_1991 omitted because of collinearity. note: _Iyear_1992 omitted because of collinearity. note: _Iyear_1993 omitted because of collinearity. note: _Iyear_1994 omitted because of collinearity. note: _Iyear_1995 omitted because of collinearity. note: _Iyear_1997 omitted because of collinearity. note: _Iyear_1999 omitted because of collinearity. note: _Iyear_2001 omitted because of collinearity. note: _Iyear_2020 omitted because of collinearity. Fixed-effects (within) regression Number of obs = 245 Group variable: countryid Number of groups = 19 R-squared: Obs per group: Within = 0.3877 min = 1 Between = 0.0325 avg = 12.9 Overall = 0.0440 max = 22 F(27, 199) = 4.67 corr(u_i, Xb) = -0.3831 Prob > F = 0.0000 ------------------------------------------------------------------------------ PT | Coefficient Std. err. t P>|t| [95% conf. interval] -------------+---------------------------------------------------------------- RND_L1 | 2164.44 994.8114 2.18 0.031 202.7151 4126.165 LVG | -9.488715 53.6484 -0.18 0.860 -115.281 96.3036 EX | -2.33e-09 3.70e-10 -6.30 0.000 -3.06e-09 -1.60e-09 GI | 2554.214 863.4114 2.96 0.003 851.6042 4256.824 RER | 24.95778 235.7769 0.11 0.916 -439.984 489.8996 EDU | 10.49908 12.47697 0.84 0.401 -14.10497 35.10313 _Iyear_1986 | 0 (omitted) _Iyear_1987 | 0 (omitted) _Iyear_1988 | 0 (omitted) _Iyear_1989 | 0 (omitted) _Iyear_1990 | 0 (omitted) _Iyear_1991 | 0 (omitted) _Iyear_1992 | 0 (omitted) _Iyear_1993 | 0 (omitted) _Iyear_1994 | 0 (omitted) _Iyear_1995 | 0 (omitted) _Iyear_1996 | -5405.357 1907.327 -2.83 0.005 -9166.523 -1644.19 _Iyear_1997 | 0 (omitted) _Iyear_1998 | -3318.004 1294.424 -2.56 0.011 -5870.552 -765.4558 _Iyear_1999 | 0 (omitted) _Iyear_2000 | -169.1396 1257.564 -0.13 0.893 -2649 2310.721 _Iyear_2001 | 0 (omitted) _Iyear_2002 | -23.07235 1211.534 -0.02 0.985 -2412.165 2366.02 _Iyear_2003 | 609.2388 1164.741 0.52 0.602 -1687.58 2906.058 _Iyear_2004 | 1467.008 1164.301 1.26 0.209 -828.943 3762.958 _Iyear_2005 | 1622.623 1102.466 1.47 0.143 -551.3931 3796.638 _Iyear_2006 | 712.6193 1070.734 0.67 0.506 -1398.822 2824.06 _Iyear_2007 | -240.958 1080.868 -0.22 0.824 -2372.382 1890.466 _Iyear_2008 | -715.8864 1062.045 -0.67 0.501 -2810.193 1378.42 _Iyear_2009 | -823.3625 1030.49 -0.80 0.425 -2855.445 1208.72 _Iyear_2010 | -314.233 988.0814 -0.32 0.751 -2262.686 1634.221 _Iyear_2011 | 11.08194 971.878 0.01 0.991 -1905.419 1927.583 _Iyear_2012 | 148.608 972.7466 0.15 0.879 -1769.606 2066.822 _Iyear_2013 | 257.0631 941.4812 0.27 0.785 -1599.497 2113.623 _Iyear_2014 | 74.81469 952.7257 0.08 0.937 -1803.919 1953.548 _Iyear_2015 | 297.1804 947.8171 0.31 0.754 -1571.874 2166.235 _Iyear_2016 | 235.1417 989.7107 0.24 0.812 -1716.525 2186.808 _Iyear_2017 | 408.6665 942.6729 0.43 0.665 -1450.243 2267.576 _Iyear_2018 | 501.8883 962.3841 0.52 0.603 -1395.891 2399.668 _Iyear_2019 | 272.2076 1014.126 0.27 0.789 -1727.604 2272.019 _Iyear_2020 | 0 (omitted) _cons | 7737.687 1651.332 4.69 0.000 4481.332 10994.04 -------------+---------------------------------------------------------------- sigma_u | 18137.871 sigma_e | 1969.1221 rho | .98835113 (fraction of variance due to u_i) ------------------------------------------------------------------------------ F test that all u_i=0: F(18, 199) = 500.53 Prob > F = 0.0000 . xtoverid xtoverid not compatible with xtreg model fe r(198);
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