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st: Re: xtoverid, cluster(X)


From   Kit Baum <[email protected]>
To   [email protected]
Subject   st: Re: xtoverid, cluster(X)
Date   Thu, 18 Mar 2010 08:00:14 -0400

On Mar 18, 2010, at 2:33 AM, Marco wrote:

> I would like to run xtreg,fe or xtreg,re with cluster option and need
> to run xtoverid test to determine if re is appropriate. I guess I need
> to include cluster option when I run xtoverid as below indicated. Am I
> right?  Many thanks
> Marco
> 
> 
> 
> xtreg, fe  cluster(X)
> est store fixed
> xtreg, re cluster(X)
> 
> 
> xtoverid, cluster(X)


xtoverid will inherit the VCE settings from the prior RE model, so strictly speaking, you don't have to use the 
cluster() option on xtoverid.

You also do not need to estimate the FE model, as it is not used in this artificial regression "generalized Hausman" test.

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html


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