(e.g., nlswork , grunfeld ) to practice your workflow before applying it to your own data.
| Command | Purpose | | :--- | :--- | | xtdescribe | Describes the pattern of panel observations (balanced/unbalanced, gaps) | | xtsum | Displays summary statistics, decomposing overall variation into between‑ and within‑unit components | | xttab | Cross‑tabulates a discrete variable, showing within‑ and between‑unit frequencies | | xtline | Plots time‑series line graphs for each panel unit (or a subset) |
(or longitudinal data). He now had a dataset where he followed the same 500 people every year for a decade. He opened , the "magic wand" of economists, to make sense of it. Step 1: Telling Stata the Plan
xtreg ln_wage hours age tenure, fe xtcd
By using Stata’s panel data tools, Sam didn't just see a snapshot; he saw a movie. He proved that when his subjects went back to school, their income rose significantly two years later. He cleaned up his results with
), you fail to reject the null hypothesis. This means you can use the model.
The modified Wald test for groupwise heteroskedasticity in FE models is implemented as: stata panel data
Calculates variation across the entities, averaging out the time dimension.
ssc install xtabond2 xtabond2 GDP l.GDP inflation trade_openness, gmm(l.GDP) iv(inflation trade_openness) nolevel small Use code with caution. Non-Linear Panels (Logit and Probit)
To deepen your knowledge, explore these resources: He opened , the "magic wand" of economists,
Cross-sectional dependence occurs when error terms across different units are correlated, often due to unobserved common shocks (e.g., a global financial crisis affecting all countries). * After running xtreg xtcsd, pesaran abs Use code with caution.
Before running regressions, you must ensure your data is in "long" format (one row per entity per year) and declared as panel data.