To fix these issues, use robust or clustered standard errors (clustering by entity is highly recommended): xtreg y x1 x2, fe vce(cluster id) Use code with caution. 5. Advanced Panel Data Techniques
) as an explanatory variable, standard FE and RE estimators are biased (Nickell bias). To solve this endogeneity issue, use the Arellano-Bond Generalized Method of Moments (GMM) estimator via xtabond or the more flexible user-written xtabond2 . stata panel data
Given violations, estimate FE with Driscoll-Kraay standard errors: To fix these issues, use robust or clustered
Generate data (or import real data) do "generate_data.do" To solve this endogeneity issue, use the Arellano-Bond
quietly xtreg y x1 x2, fe estimates store fixed quietly xtreg y x1 x2, re estimates store random hausman fixed random Use code with caution. If the p-value is significant (
: Get an overview of within-entity and between-entity variation. Command: xtsum variable_name