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From | Christopher Baum <kit.baum@bc.edu> |
To | "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu> |
Subject | re: RE: st: areg Vs fe |
Date | Tue, 13 Mar 2012 08:58:24 -0400 |
<> Richard wrote I don't think it is a matter or running a test; it is a matter of which is appropriate given the nature of your problem. The help for areg says "areg is designed for datasets with many groups, but not a number of groups that increases with the sample size." Good advice indeed. Note that in webuse grunfeld,clear reg invest mvalue kstock i.company xtreg invest mvalue kstock,fe areg invest mvalue kstock, absorb(company) The three sets of point and interval estimates are identical, as they are estimating exactly the same model. Kit Kit Baum | Boston College Economics & DIW Berlin | http://ideas.repec.org/e/pba1.html An Introduction to Stata Programming | http://www.stata-press.com/books/isp.html An Introduction to Modern Econometrics Using Stata | http://www.stata-press.com/books/imeus.html * * 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/