st: RESET with fixed effects

[Bruno Rocha <bruno.j.rocha@gmail.com>]

Dear statalisters, hello,

I have implemented a panel FE model and I would like to implement a
RESET test to see if the linear specification of the model is correct.
However I don't know whether I should include the country and year
fixed effects in the fitted values computed from the original
equation. Here http://www.stata.com/statalist/archive/2009-09/msg01236.html
it is suggested that data should be demeaned and then perform the
test.

Would it be wrong to compute the squared fitted values using the FE? A
possible objection arises from the fact that the coefficients of
country dummies are in principle inconsistent (as T is only 8 and
N=27).

Many thanks for your attention,
Best regards
Bruno Rocha
(Phd student -- University of Essex)
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/