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st: regress command with panel data
From
Tunga Kantarcı <[email protected]>
To
[email protected]
Subject
st: regress command with panel data
Date
Tue, 22 Mar 2011 21:36:08 +0100
Hello,
I asked it before but could not get any reply. I would like to recast
my question. I hope this is not inappropriate.
I have data in panel format and I declared it as a a panel. All fine.
I am carrying out a fixed effect regression to overcome the
endogeneity problem (due to simultaneity) I have in my model. In fact,
to demonstrate that I have the endogeneity problem, I wanted to
compare the estimates from a plain OLS regression (regress y x) to the
estimates from the fixed effects regression (xtreg y x, fe). To carry
out the OLS regression, I simply run the command "regress y x".
My question is: If I use the plain "regress y x" command to get the
plain OLS estimates using the panel data I have, will that regression
be correct? Will Stata treat my panel data as pooled cross sections?
Or do I need to instruct Stata with a special command to run the plain
OLS using my panel data?
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