With little algebra you can see that standard correction in Stata (without
_sa_) is the same as Green 634-635 (third edition). You have to replace Qn
(book) with the inverse of Tbar (manual). Rodrigo.
----- Original Message -----
From: "Paul Seed" <[email protected]>
To: <[email protected]>
Sent: Wednesday, December 20, 2006 6:02 AM
Subject: st: Re: Random effects and unbalanced panels
Dear statalist,
I am a little confused by Rodrigo's advice. Does he mean that
-xtreg- with the -re- option adjusts for unbalanced panels
automatically; or is he suggesting adding a further option?
The only further option I can see in the manual is -sa-, which uses the
Swamy-Arona estimator of the variance components.
Any comments gratefully received.
Paul Seed
Date: Tue, 19 Dec 2006 10:57:49 -0500
From: "Rodrigo A. Alfaro" <[email protected]>
Subject: st: Re: Random effects and unbalanced panels
Yes, with -xtreg, re- you can check 2 adjustment in the reference book. R.
- ----- Original Message -----
From: "Welsch, David M" <[email protected]>
To: <[email protected]>
Sent: Monday, December 18, 2006 12:38 PM
Subject: st: Random effects and unbalanced panels
I have a question about random effects with unbalanced panels.
Greene, in his "Econometric Analysis" book, mentions an adjustment for
random effects with unbalanced panels (page 634 of the third edition)
Does Stata do this adjustment automatically, I could not find a command
so I am assuming it does it automatically or am I completely wrong and I
have to write the code?
Thanks in advance,
Dave
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