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st: Comparing and Testing coefficients of different FE or LDSV models while clustering


From   Christopher Parker <[email protected]>
To   [email protected]
Subject   st: Comparing and Testing coefficients of different FE or LDSV models while clustering
Date   Sat, 17 Aug 2013 23:02:26 +0200

Dear Statalists,

I am analysing the cross-sectional and time-series variation of an
indicator for the liberalization of network industries in OECD
countries. Im unit of observation is therefore industry i in country c
at time t. Im clustering for each industry in each country (a
identification variable made by combining the industry and country
identifier). I want to use a LDSV regression controlling  for country
and and seperate industry effects.

My problem: I would like to make sure that controlling for industry
and country specific effect (germany gas, greece telecom etc.) is not
more appropriate. To restate, I am worried that my regression might be
biased due to correlation between my explanatory variables and a joint
industry and country unobserved effect. How can I test if the
coefficients for my explanatory variables are significantly different
from each other?

Many thanks ahead

Chris
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