Alternative to FE when errors are strongly serially correlated.
: 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 ).
FE is Stata’s superstar. It controls for time-invariant unobservables (e.g., corporate culture, country geography). But:
Alternative to FE when errors are strongly serially correlated.
: 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 ).
FE is Stata’s superstar. It controls for time-invariant unobservables (e.g., corporate culture, country geography). But:
