Statalist The Stata Listserver


[Date Prev][Date Next][Thread Prev][Thread Next][Date index][Thread index]

Re: st: Random effetcs and unobserved heterogeneity


From   menale kassie <dawitkassie@yahoo.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Random effetcs and unobserved heterogeneity
Date   Fri, 8 Sep 2006 13:28:22 -0700 (PDT)

Thanks for your reply. What if the omitted variables
are not correlated with observed covariates?

Regards,
Menale

--- Scott Cunningham <scunning@gmail.com> wrote:

> On Sep 8, 2006, at 3:30 PM, menale kassie wrote:
> 
> > Dear All,
> >
> > Does the random effects model address concenrs of
> > omitted variables (e.g. unobserved household
> > heterogeneity)?
> 
> It depends on what you mean by address.  If the
> omitted variables are  
> correlated with the included covariates, random
> effects estimators  
> will not be unbiased and consistent.  The random
> effects model  
> explicitly assumes that the omitted variables are
> uncorrelated with  
> covariates in the model.  This is covered thoroughly
> in Wooldridge's  
> panel and cross-section textbook (which I don't have
> with me), and  
> Cameron and Trivedi (which I do have with me) in
> chapter 22.
> 
> *
> *   For searches and help try:
> *  
> http://www.stata.com/support/faqs/res/findit.html
> *   http://www.stata.com/support/statalist/faq
> *   http://www.ats.ucla.edu/stat/stata/
> 


__________________________________________________
Do You Yahoo!?
Tired of spam?  Yahoo! Mail has the best spam protection around 
http://mail.yahoo.com 
*
*   For searches and help try:
*   http://www.stata.com/support/faqs/res/findit.html
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/



© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index