Hi all,

I have a question regarding a panel data regression using a Random Effect Model (REM). I am using STATA version 15.1.

After preparing the dataset for panel data regression using **xtset**, I ran the following regression code: **xtreg Y X1 X2 Xn, re**

I am getting significant results to a 95% significance level, which is great.

My question is: Can I interpret these results as a causality or a correlation, now that it is a panel data REM regression?

If it is a correlation, how would I then test for causality, this being a possibility when working with panel data.

I hope someone can help.

All the best,
Amalie