Stata Panel Data Exclusive -

| Mistake | Correct | |---------|---------| | Using reg without clustering | xtreg, fe robust or reg, vce(cluster id) | | Including time-invariant vars in FE | Dropped automatically – use RE or hybrid | | Hausman with non-spherical errors | Use xtoverid after RE | | Ignoring serial correlation | Use xtreg, fe with lagged DV or xtserial | | GMM with too many instruments | Collapse instruments: collapse option in xtabond2 (external) |

* Estimate a dynamic panel model xtdpd y L.y x1 x2, lags(1) maxlags(2) stata panel data exclusive

Before analysis, you must ensure your categories do not overlap. Each unit ( ) should belong to exactly one group ( Creating Dummies | Mistake | Correct | |---------|---------| | Using

// Equivalent: areg with absorption areg y x1 x2 i.year, absorb(id) Advanced Visualization for Panel Data This will estimate

// Time series by unit (first 9 units) xtline y, overlay

The "collapse" suboption to prevent "instrument proliferation"—a common pitfall that weakens the validity of your results. 4. Advanced Visualization for Panel Data

This will estimate a fixed-effects model of y on x1 and x2 .