| Mistake | Correct | |---------|---------| | Using reg without clustering | xtreg, fe robust or reg, vce(cluster id) | | Including time-invariant vars in FE | Dropped automatically – use RE or hybrid | | Hausman with non-spherical errors | Use xtoverid after RE | | Ignoring serial correlation | Use xtreg, fe with lagged DV or xtserial | | GMM with too many instruments | Collapse instruments: collapse option in xtabond2 (external) |
* diagnostics xtserial ln_y x1 x2 xttest3
Stata provides several diagnostic tests for panel data:
Stata transforms panel data analysis from a complex mathematical hurdle into a streamlined workflow. By using the