Also take a look at FAQ on
http://www.stata.com/support/faqs/stat/xtreg2.html
which answers the "How can there be an intercept in
the fixed-effects model" thoroughly.
uli
Nick Cox wrote:
> The best documentation of the -xt- commands
> is the [XT] manual.
>
> Nick
> [email protected]
>
> Sunil W
>
> > Thanks to Nick and Scott for replying to my earlier
> > post. I have a couple of more questions regarding the
> > fixed effects model:
> >
> > One, how do I interpret the constant term in the
> > output when I run the xtreg, fe command. I understand
> > that the fixed effects model should give me a separate
> > constant terms for every group, but I get only a
> > single constant. Is that an average of all the group
> > specific constants?
> >
> > Two, what algorithm does stata use in the xtreg,fe
> > command? Is it MLE or GLS or plain OLS? Also, what
> > would be a good website to read in detail about the
> > various algorithms behind the stata commands?
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