Panel Data — Stata

No two observations should share the same combination of panel ID and time ID. This uniqueness is the bedrock of panel data.

: Used when the dependent variable depends on its own past values ( yt−1y sub t minus 1 end-sub ). Use the Arellano–Bond estimator ( xtabond ). stata panel data

The Random Effects model assumes that the variation across entities is random and uncorrelated with the independent variables included in the model. Unlike FE, RE allows you to include time-invariant variables (like gender) as explanatory variables. xtreg y x1 x2, re Choosing Between FE and RE: The Hausman Test No two observations should share the same combination