Thanks a lot for your answer,
Yes i will restate it clearly :
The model is the following:
lcrmrteit = �0 + �1 lprbarrit + �2 lprbconvit +d04 + d05 + uit.
lcrmrteit is the log of the crime rate
lprbarrit is the log of the 'probability' of arrest
prbconvit is the 'probability' of conviction
d04 =1 if year == 2004
d05 =1 if year == 2005
The first question is to develop a model with fixed effects using binary
variables that can be estimated by OLS (it is MCO in French) and estimate
this model using Stata
The second question is to use an F test to validate the usage of fixed
effects (restricted F test)
Third question is to estimate the model using the fixed effects and use an
F statistic to validate the presence or absence of fixed effects ( using
integrated commands ?? )
And they finally ask us what the difference is between the 3 F statistics
obtained in these 3 questions , which for me kind of all seem to be the
same.
Thanks in advance for your help.
>�What�does�"fixed�effects�using�binary"�mean? �What�are�d04�and�d05?�By
>�MCO�do�you�mean�"Monte�Carlo�Optimization"�to�estimate�numerical
>�integration�via�sampling?
>�
>�The�test�that�all�FE�are�0,�or�var(u_i)=0,�is�reported�by�-xtreg,�fe-
>�as�a�matter�of�course,�I�believe,�and�available�as�e(F_f)�after
>�estimation.
>�
>�Can�you�restate�your�problem�in�terms�of�available�data,�e.g.�start�with
> �webuse�grunfeld,�clear
>�or�the�like?
>�
>�On�11/1/07,�joelle�farajallah�<[email protected]>�wrote:
>>�Hi�everyone
>>�I�have�quite�a�few�questions�about�the�fixed�effects�that�might�sound
>>�very
>>�beginner�level�things�but�i'm�getting�really�stuck�with�them
>>
>>�We�have�a�certain�model
>>�lcrmrteit�=��0�+��1�lprbarrit�+��2�lprbconvit�+d04�+�d05�+�uit.
>>
>>�The�first�question�is�to�develop�a�model�with�fixed�effects�using�binary
>>�that�can�be�estimated�by�MCO�and�estimate�this�model�using�Stata
>>
>>�The�second�question�is�to�use�an�F�test�to�validate�the�usage�of�fixed
>>�effects�(restricted�F�test)
>>�Third�question�is�to�estimate�the�model�using�the�fixed�effects�and�use
>>�an
>>�F�statistic�to�validate�the�presence�or�absence�of�fixed�effects�(�using
>>�integrated�commands�??�)
>>
>>�And�they�finally�ask�us�what�the�difference�is�between�the�3�F
>>�statistics
>>�obtained�in�these�3�questions�,�which�for�me�kind�of�all�seem�to�be�the
>>�same.
>>�Thanks�in�advance�for�your�help.
>>
>>
>>�*
>>�* �For�searches�and�help�try:
>>�* �http://www.stata.com/support/faqs/res/findit.html
>>�* �http://www.stata.com/support/statalist/faq
>>�* �http://www.ats.ucla.edu/stat/stata/
>>
>�
>�*
>�* �For�searches�and�help�try:
>�* �http://www.stata.com/support/faqs/res/findit.html
>�* �http://www.stata.com/support/statalist/faq
>�* �http://www.ats.ucla.edu/stat/stata/
>�
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
