Justina,
Subject: st: panel command if T = N
To: [email protected]
From: [email protected]
Date sent: Wed, 10 Nov 2004 16:28:26 +0100
Send reply to: [email protected]
> Dear All,
>
> a good friend of mine would like to estimate a model with aggregate data (
> countries) with yearly observations. In this synthetic panel he has
> approximately as many Ts as Ns ( countries), about 20 Ts and 20 Ns.I guess
> he will do fixed or random effects.
>
> I would like to ask the wise Stata Listers which stata estimation procedure
> they can recommend him. Do the stata panal commands also work properly for
> such a case when N = T ?
It's not quite an answer to your question, but I would recommend
caution in using the random effects estimator. RE requires the
between estimator to be consistent, and that in turn requires T to be
"big". 20 is a long way from infinity!
Hope this helps.
--Mark
>
> Thanks a lot,
>
> Justina
Prof. Mark E. Schaffer
Director
Centre for Economic Reform and Transformation
Department of Economics
School of Management & Languages
Heriot-Watt University, Edinburgh EH14 4AS UK
44-131-451-3494 direct
44-131-451-3008 fax
44-131-451-3485 CERT administrator
http://www.som.hw.ac.uk/cert
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