<>
Look at the example adapted from Baum (2006), chapter 9.1
http://www.stata-press.com/books/imeus.html
*************
u http://www.stata-press.com/data/imeus/traffic, clear
qui{
xtreg fatal beertax spircons unrate perincK, fe
estimates store fe
xi: reg fatal i.state beertax spircons unrate perincK
estimates store dummy
}
* see the same test as in xtreg, fe
testparm _Istate_*
* table of results
estimates table fe dummy, style(oneline)
*************
The parameter estimates are the same, and the -testparm- line replicates the
F-test after -xtreg,fe-
HTH
Martin
-----Ursprüngliche Nachricht-----
Von: [email protected]
[mailto:[email protected]] Im Auftrag von Asgar
Khademvatani
Gesendet: Samstag, 28. Februar 2009 09:51
An: [email protected]
Betreff: Re: st: AW: LSDV vs. FE
Hello Martin,
Thanks for the comments. My understanding from Baum (2006) is that in
running LSDV, which is equivalent to one-way FE, we should run with
constant term as,( for instance if we have 4 Units):
regress y d1 d2 d3 x where d2 d3 d3 are dummies.
Am I right?
Thank you.
Asgar
Martin Weiss wrote:
> <>
>
> You want to consult Baum (2006), chapter 9.1.1, where this is explained
> quite clearly. See
> http://www.stata-press.com/books/imeus.html
>
>
> HTH
> Martin
>
> -----Ursprüngliche Nachricht-----
> Von: [email protected]
> [mailto:[email protected]] Im Auftrag von Asgar
> Khademvatani
> Gesendet: Freitag, 27. Februar 2009 19:48
> An: [email protected]
> Betreff: st: LSDV vs. FE
>
> Hello All,
>
> In general, I understand that LSDV estimation method is an alternative
> way of modeling fixed-effectsin in panel data approach , or it is
> equivalent to FE method. But, in STATA, we can specify a LSDV model in two
> ways:
>
> (1)with common constant as:
> LS y d1 d2 d3 x1 x2 x3 or
>
> (2)we can run it without constant or with non-constant option as:
> (for example)LS d1 d2 d3 x1 x2 x3, nonconstant
>
> I got a couple of concerns and questions as follows:
>
> First, which syntax of LSDV given above is appropriate or reliable for
> modeling a fixed-effects model? I mean it should be run with constant or
> without constant as shown above?
>
> Second, when we run FE model in Stata as:
>
> xtreg y x1 x2 x3, fe
>
> My question is that is this equivalent to LSDV with constant or without
> constant?
>
> Thank you in advance.
>
> Regards,
> Asgar Khademvatani
> Ph.D. Candidate-Department of Economics
> The Faculty of Social Sciences
> University of Calgary,
> 2500 University Dr., NW., Calgary,
> Alberta, Canada, T2N 1N4
> Email: [email protected]
> Tel: +1(403)210-2574
>
> *
> * For searches and help try:
> * http://www.stata.com/help.cgi?search
> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
>
>
> *
> * For searches and help try:
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> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
>
>
>
--
Sincerely,
Asgar Khademvatani, PhD Candidate
Department of Economics
University of Calgary
*
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