Stata Panel Data [top]

Before running regressions, you must format your data so Stata recognizes its panel structure.

* 1. Run and save the Fixed Effects model xtreg income education age, fe estimates store fe_model * 2. Run and save the Random Effects model xtreg income education age, re estimates store re_model * 3. Run the Hausman test hausman fe_model re_model Use code with caution. Interpreting the Results If

xtlogit y x1 x2 x3, fe * Fixed effects panel logit xtlogit y x1 x2 x3, re * Random effects panel logit xtprobit y x1 x2 x3, re * Random effects panel probit Use code with caution. 6. Summary Checklist for Panel Data Analysis Stata Command Set up panel parameters xtset panel_id time_id 2 Descriptive statistics xtdescribe , xtsum 3 Run base models xtreg y x, fe and xtreg y x, re 4 Test for RE suitability xttest0 (after RE) 5 Choose between FE and RE hausman fe_model re_model 6 Check for serial correlation xtserial y x 7 Correct standard errors Add vce(cluster panel_id) to regression

) is that the Random Effects model is consistent and efficient. To run the test in Stata: stata panel data

Stata offers a range of benefits for panel data analysis, including:

If the p-value is , fail to reject the null. Use Random Effects for higher efficiency. 5. Diagnostic Testing and Robust Estimation

Visual inspection is crucial. xtline produces time‑series plots for each unit. To plot the first 10 individuals: Before running regressions, you must format your data

You can even set the data as a panel by specifying only the panel variable ( xtset panelvar ) if the observations are in the correct order within each panel, but it is always good practice to also include the time variable.

Panel data has two dimensions of variation: units (variation from one person/country to another) and within a unit (variation over time for the same person/country). Stata provides specialized commands to explore these dimensions. Summary Statistics: xtsum

Allows the inclusion of time-invariant variables. Run and save the Random Effects model xtreg

The random‑effects model assumes that the unit‑specific heterogeneity is uncorrelated with the regressors and treats it as a random component:

If you are working on a specific research project, I can help you refine your methodology. Let me know: What are your ? Are your entities countries, companies, or individuals ? What version of Stata are you currently using? Share public link

: Use standard commands like import excel or use .