----- Original Message -----
From: "Buzz Burhans" <[email protected]>
To: <[email protected]>
Sent: Tuesday, May 06, 2003 5:39 PM
Subject: st: xtreg, bootstrap
> I am assessing a dataset from a demonstration project where a continuous
> outcome variable was measured repeatedly on 7 demonstration farms. I have
a
> total of 372 observations on the 7 farms. I used xtreg to assess the
> association of the outcome with a single continuous independent variable
> and have found several problems in the data. First, it fails the Hausman
> test. Second, the residuals are heterocschedastic, decreasing with fit;
and
> are skewed as well.
>
> My question: Would it be reasonable to evaluate the statistics from this
> model by bootstrapping with the cluster(farm) option?
>
> Thanks for any insights.
>
> Buzz Burhans
> Department of Animal Science
> Cornell University
One possibility would be to use -areg- for the fixed effects and use weights
or the robust option to account for the heteroskedasticity*.
Hope this helps,
Scott
*J. McCulloch ( "On Heteros*edasticity", Econometrica, Vol. 53, 1985)
concluded that the word is derived from Greek roots and the proper English
spelling is with a 'k'.
*
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* http://www.stata.com/support/faqs/res/findit.html
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