How to perform Panel data regression for random effect model in STATA?

The previous article (Pooled panel data regression in STATA) showed how to conduct pooled regression analysis with dummies of 30 American companies. The results revealed that the joint hypothesis of dummies reject the null hypothesis that these companies do not have any alternative or joint effects. Therefore pooled regression is not a favourable technique for […]

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How to perform LASSO regression test?

In statistics, to increase the prediction accuracy and interpret-ability of the model, LASSO (Least Absolute Shrinkage and Selection Operator) is extremely popular. It is a regression procedure that involves selection and regularisation and was developed in 1989. Lasso regression is an extension of linear regression that uses shrinkage. The lasso imposes a constraint on the sum of the absolute values of the model parameters. Here the sum has a specific constant as an upper bound.

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