Dear all,
I'm using a first order markov model, on panel data, to model poverty transitions and control for the initial conditions problem. In stata I use a biprobit model and I would like to control for unobserved heterogeneity. I have thought of using random effects or creating a variable that would capture the time invariant unobservable individual specific effects. However it appears neither of the options are possible in stata. Do you know any way I could control for that?
Dimitris Souftas
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