[Date Prev][Date Next][Thread Prev][Thread Next][Date index][Thread index]
> Jenny Montaldo wrote:
> > Another related question concern the estimates for white collars. The xtreg, fe have an
> > overall r^2 of 0.27 (much better than the previous one). However when I try the areg
> > command it says that the matrix is not positive definite (I use also some lagged values of > my variable of interests in the estimation).
> If your T is small, you should be aware that using lagged dependent
> variables in a fixed-effects model generates biased parameter
> estimates. See Judson and Owen (1999) for more on this.
> If you insist in using LDVs in this situation, then you may have to go
> the IV route, after which things can get quite messy.
> Clive Nicholas
> [Please DO NOT mail me personally here, but at
> <firstname.lastname@example.org>. Thanks!]
> Judson RA and Owen AL (1999) "Estimating Dynamic Panel Data Models: A
> Guide For Macroeconomists", Economics Letters 65(1): 9-15.
> * 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/
* For searches and help try: