Kit et al.--
A fixed-effects model deals with one very specific type of endogeneity
due to omitted variables that vary only across groups in i() and not
within. Hence the discussion of -xtreg- in
http://www.stata-journal.com/article.html?article=st0136
But it sounds like Luis Ortiz needs survival analysis tools, not
-xtreg-, so he might like to read some of the references in this list:
http://www.econ.ku.dk/cam/workshops/Microdata%20RTN/RTN-MICRODATA%20COURSE%20ON%20DURATION%20ANALYSIS.PDF
On Tue, May 6, 2008 at 1:39 PM, Kit Baum <[email protected]> wrote:
> Nicola said
>
> you may choose, depending on your data, between using a fixed effect model,
> ...
>
>
> A fixed effects model is an OLS regression with a dummy variable for each
> unit in the panel. It does not deal with endogeneity in any form. If the
> regression on one unit in the panel is plagued with endogeneity, the fixed
> effects model will be as well. FE models deal with unobserved heterogeneity,
> not endogeneity.
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