Statalist The Stata Listserver


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

st: logit with correlated residuals


From   "A D'Ignazio" <[email protected]>
To   [email protected]
Subject   st: logit with correlated residuals
Date   Sat, 23 Jun 2007 14:20:21 +0000

Dear Statalist,

I have a dataset consisting of individual characteristics for N firms. For each pair of them, I also know whether they are in a business relationship or not.

I am modelling the likelihood of having a business relationship, for each pair, based on the firms individual characteristics (difference in size, etc...).

By using a logit, the results are presumably affected by the fact that the residuals are going to be correlated across observations, and standard errors could be underestimated.

As a first solution, I've added N-1 dummies (for each pair, I have two dummies assuming value 1) and estimated the new model with fixed effects.

Could you suggest me another way to address the problem at hand? For instance, how to cluster the residual around the firms identifiers in a logit model?

Many thanks!

Alex

_________________________________________________________________
Push the button! Crea il tuo blog e fatti vedere...���� http://pushthebutton2006.spaces.live.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 1996–2024 StataCorp LLC   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index