Re: st: Household-fixed effect model with 50,000 hh

[Maarten buis <maartenbuis@yahoo.co.uk>]

--- On Wed, 3/11/10, Shikha Sinha wrote:
> Let child ID is cid and household id is hhid and data are
> child-level observation within the households, and I want
> to estimate a household-fixed effect model, then What is
> the difference among these three estimation or are they same?
> 
> 1. xi: reg y x1 x2 i.hhid
> 
> 2. sort cid hhid
> tsset cid hhid
> xtreg y x1 x2, fe
> 
> 3. xi:xtreg y x1 x2 i.hhid, fe

1. is in principle ok, but you said earlier that your data
contains too many households for Stata to be able to estimate
that model.

2. is wrong for your purpose, you want to use -xtset- not 
-tsset-.

3. is wrong also, the whole point of -xtreg- is that that
way you can avoid making those dummies.


Instead you should use:

xtset hhid
xtreg y x1 x2, fe 

For more information read -help xtreg- and -help xtset-.

Hope this helps,
Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany

http://www.maartenbuis.nl
--------------------------



      

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