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st: Why does Stata tell me that Random effects u_i ~ Gaussian?


From   alejandro lopez-feldman <[email protected]>
To   [email protected]
Subject   st: Why does Stata tell me that Random effects u_i ~ Gaussian?
Date   Mon, 28 Mar 2011 13:07:02 -0600

Hi all,

I have a question about the Stata output after xtreg, re.  My question
is very simple, why does Stata tell me that Random effects u_i ~
Gaussian? The theory for estimating random effects using GLS doesn't
require the normality assumption so I was wondering if that is used in
any of the output reported when using , re? I can't see why that info
is relevant there (if I was using MLE that would be other story).

Thanks for any help

Alejandro



-- 
-------------------------
Alejandro López-Feldman
Profesor-Investigador
CIDE, División de Economía
+(52) 5727-98-00 ext. 2736
http://www.cide.edu/investigador/profile.php?IdInvestigador=1195

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