Statalist


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: st: AW: LSDV vs. FE


From   Asgar Khademvatani <akhademv@ucalgary.ca>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: AW: LSDV vs. FE
Date   Sat, 28 Feb 2009 01:51:18 -0700

Hello Martin,

Thanks for the comments. My understanding from Baum (2006) is that in running LSDV, which is equivalent to one-way FE, we should run with constant term as,( for instance if we have 4 Units):
regress y d1 d2 d3 x         where d2 d3 d3 are dummies.

Am I right?

Thank you.
Asgar

Martin Weiss wrote:
<>
You want to consult Baum (2006), chapter 9.1.1, where this is explained
quite clearly. See http://www.stata-press.com/books/imeus.html


HTH
Martin

-----Ursprüngliche Nachricht-----
Von: owner-statalist@hsphsun2.harvard.edu
[mailto:owner-statalist@hsphsun2.harvard.edu] Im Auftrag von Asgar
Khademvatani
Gesendet: Freitag, 27. Februar 2009 19:48
An: statalist@hsphsun2.harvard.edu
Betreff: st: LSDV vs. FE

Hello All,

In general, I understand that LSDV estimation method  is an alternative
way of modeling fixed-effectsin in panel data approach , or it is
equivalent to FE method. But, in STATA, we can specify a LSDV model in two
ways:

(1)with common constant as:
LS y d1 d2 d3 x1 x2 x3   or

(2)we can run  it without constant or with non-constant option as:
(for example)LS d1 d2 d3 x1 x2 x3, nonconstant

I got a couple of concerns and questions as follows:

First,  which syntax of LSDV given above is appropriate or reliable for
modeling a fixed-effects model? I mean it should be run with constant or
without constant as shown above?

Second, when we run FE model in Stata as:

xtreg y x1 x2 x3, fe

My question is that is this equivalent to LSDV with constant or without
constant?

Thank you in advance.

Regards,
Asgar Khademvatani
Ph.D. Candidate-Department of Economics
The Faculty of Social Sciences
University of Calgary,
2500 University Dr., NW., Calgary,
Alberta, Canada, T2N 1N4
Email: akhademv@ucalgary.ca
Tel: +1(403)210-2574

*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/




--
Sincerely,
Asgar Khademvatani, PhD Candidate
Department of Economics
University of Calgary


begin:vcard
fn:Asgar Khademvatani
n:Khademvatani;Asgar
org:University of Calgary;Economics
adr:;;512, Jackson Place, NW;Calgary;Alberta;T3B 2V3;Canada
email;internet:akhademv@ucalgary.ca
title:PhD Candidate
tel;work:(403)2846496
tel;home:(403)2102574
url:http://econ.ucalgary.ca/profiles/asgar-khademvatani
version:2.1
end:vcard




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