st: Panel data analysis random effects

[Miguel Requena <mrequena@ulb.ac.be>]

Hello,

I am quite new at using Stata and am trying to perform a panel data 
regression with random effects (a variable constant across years for 
each individual avoids the use of fixed effects).

I followed a tutorial coming from Princeton but I am unsure about the 
results I obtain.

After entering the following command:

xtreg suiciderate pol gdppercapita gdpgrowth lat, re

I get the following output: (see joint file).

The first thing that bugs me is the  Prob > chi2        = 0.0000.

See, the tutorial says that this value should be <0.05 for the model to 
be valid, but I'm suspicious about getting a null value...

Also, most of the two-tail p-values are also strangely close to zero 
which bugs me even more.

Any idea why that might happen? Or is there anything else that you see 
that would mean that my model is presenting a default?

Thanks in advance for your help.

--
Requena Castro Miguel
Business Economics
Solvay Brussels School

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