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

By Saptarshi Basu Roy Choudhury and Priya Chetty on October 31, 2018 4 Comments

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 test time series multicollinearity in STATA?

By Rashmi Sajwan and Saptarshi Basu Roy Choudhury on October 24, 2018 1 Comment

The problem of multicollinearity arises when one explanatory variable in a multiple regression model highly correlates with one or more than one of other explanatory variables. It is a problem because it underestimates the statistical significance of an explanatory variable (Allen, 1997).