David Reinstein asked whether there is a fixed-effect extension to -xttobit-.
In responding, Steven Stillman mentioned that fixed-effects nonlinear models
provide inconsistent parameter estimates.
If the list will tolerate a couple of na�ve questions: not being an
econometrician, I'm curious as to why a preference for fixed-effects models is
often expressed for longitudinal data? Is it because the number of panels in
econometrics studies is sometimes too few to justify handling panels as a
random effect? If so, does it matter that a fixed-effect estimator is not
consistent, since with a fixed-effect model, prediction and hypothesis testing
are confined to the panels in the data in-hand?
Joseph Coveney
*
* 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/
