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Re: st: Difference in Difference vs. Fixed Effects


From   "Sebastian Beil (dienstlich)" <[email protected]>
To   "Stata List" <[email protected]>
Subject   Re: st: Difference in Difference vs. Fixed Effects
Date   4 Oct 2013 10:24:15 +0200

Hello Jörg,

if you need a reference you can look up chapter 4 of Andreß/Golsch/Schmidt (2013): Applied Panel Data Analysis for Economic and Social Surveys. Springer. They compare pooled OLS, First Differences and FE-Models. The problem with pooled OLS is that it uses the between variance, even when you use the cluster option (which does NOT control for all the serial correlation). The other models use the within-variance only.

Hope this helps,
Sebastian

--
Sebastian Beil, M.A.

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Lehrstuhl für empirische Sozialforschung

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