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st: -xtfevd- with ar1


From   Bin Dong <[email protected]>
To   [email protected]
Subject   st: -xtfevd- with ar1
Date   Mon, 19 Jul 2010 03:52:04 +1000

Dear all,

I am wondering if there is anyone who is familiar with -xtfevd- (Panel
Fixed Effects Regression with Vector Decomposition).  I meet a problem
when I use -xtfevd- command. I have a balanced panel with 1260 obs.
The  regression drops 40% obs ( only 756 obs left) when I use -xtfevd-
with the option "ar1" (Cocrane-Orcutt transformation). The regression,
however, will keep all obs if I run -xtfevd- without the "ar1".  I am
really confused about it because all obs are kept when I use -prais-
or -xtpcse- command. I will much appreciate it if anyone can provide
me an idea to solve this problem. Thank you very much in advance.

Cheers,
Bin
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