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RE: st: FE vs RE and Hausman


From   "Wooldridge, Jeffrey" <[email protected]>
To   <[email protected]>
Subject   RE: st: FE vs RE and Hausman
Date   Fri, 4 Mar 2011 21:16:40 -0500

Random effects will work provided there is some cross section variation
but FE will not. Is it possible that every unit in your sample has
either all ones in every time period or all zeros in every time period?

Try this:

egen sumy = sum(y), by(id)
tab sumy

If you have a balanced panel, does sumy take on only two values?

More generally, define

dy = y - sumy
tab dy

If this is always zero, then y does not vary by id.

-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Dmitriy
Krichevskiy
Sent: Friday, March 04, 2011 7:09 PM
To: [email protected]
Subject: Re: st: FE vs RE and Hausman

Well, the Random Effect parts seems to work fine. Hence, I am really
perplexed here.

On 3/4/11, Brendan Halpin <[email protected]> wrote:
> On Fri, Mar 04 2011, Dmitriy Krichevskiy wrote:
>
>> Unfortunately my attempts have failed as I get  'outcome
>> does not vary in any group' error anytime I try to run Fixed effect.
>
> Is it possible that the outcome variable doesn't vary within ID?
>
> Either because that is what the data says, or because you have somehow
> mis-specified the ID variable in such a way that it is broken down by
> outcome?
>
> Brendan
> --
> Brendan Halpin,  Department of Sociology,  University of Limerick,
Ireland
> Tel: w +353-61-213147 f +353-61-202569 h +353-61-338562; Room F1-009 x
3147
> mailto:[email protected]
http://www.ul.ie/sociology/brendan.halpin.html
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>


-- 
Dmitriy Krichevskiy Ph.D. Candidate
Economics Department
Florida International University
www.fiu.edu/~dkrichev

Research Associate, College of Education
Lumina Foundation Project
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