Dear Stata Users,
I am quite a newbie to Stata and panel data. Actually when I take a look at books, articles, PDFs, or any such materials, I just come across econometrics statistics or codes, anytime. All I exactly want to do is to know how to proceed. For instance, one of my friends advised me first to run panel unit roots (maybe panel cointegration also, I don't know) and multicollinearity & then go on with selecting the appropriate model, i.e. fixed, random, or pooled one. But it might be also required to use dynamic panel rather than static one. Then she told me after deciding on which method to use, I shall run tests for heteroscedasticity, autocorrelation and similar violations and improve my standard errors, accordingly. However, in my opinion, there must be an order like there is in OLS. Moreover, I also want to use some dummies in my panel analyses, such as a crisis dummy. Shall I create time dummies for all the years I use in my data or just one dummy is enough? If the former is the correct way, can I use the dummies for all fixed, random, and pooled analyses? Do I need also create dummies for the cases or does it depend on my preferences? Actually my data has 15 years and 8 cases.
Could you please tell me or provide to data to get simple tricks how to proceed? Thanks in advance!
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