This will test for autocorrelation in the residuals of a fixed-effects model.
Panel data can be organized in two primary ways before you start generating exclusive content: Structure Description One column per variable; row for each entity-period. Standard xt analysis in Stata. Wide Form Column for each variable-period; one row per entity. Comparing specific years side-by-side. Source: Principles of Econometrics .
How much the variable changes over time for a single individual. This variation is what Fixed Effects estimators use. xttab (Panel Tabulation) stata panel data exclusive
Choosing the correct estimator determines whether your coefficients represent causal relationships or mere correlations.
: Determines if a Fixed Effects or Random Effects model is more appropriate. Rejection of the null ( ) favors Fixed Effects. Modified Wald Test This will test for autocorrelation in the residuals
To make your dataset "exclusive" to a specific set of observations, you use keep or drop .
The Hausman test evaluates whether the idiosyncratic errors are correlated with the regressors. Wide Form Column for each variable-period; one row
Panel data almost always have error terms that are correlated within a panel over time. Standard errors must account for this.
Never ignore clustering. Never treat panel as pooled without testing. Always visualize within/between variation before modeling. Use xtset religiously. This text covers 99% of applied panel needs.