I have a panel data for US listed firms for the years 2001-2019. I am trying to a model to determine the impact of Geographic Diversification on Firm Performance (winsorized ROA.) I want to make a determination between the model to be used i.e. Pooled OLS, FE or RE. I first ran the RE model and obtained the result below. I am confused whi the chi2 statistic is missing. (An earlier post on this topic on STATALIST suggested that this happens when the number of coefficients exceeds the number of groups. But that does not seem to be the case in the model I ran. Have I misunderstood something?)
Code:
. xtreg ROA_win05 Ln_Revenue Ln_LTDTA CoAge TPSD Ind_GSD_by_Year wGDPpc wCPI wDCF wExpgr wGD > Pgr wCons c.l1.GSD##c.l1.GSD if FOREIGNSALESTOTALSALES !=. & FOREIGNSALESTOTALSALES >10 & > Year_ < YearInactive & Mfr==1, re Random-effects GLS regression Number of obs = 1,137 Group variable: n_CUSIP Number of groups = 98 R-sq: Obs per group: within = 0.0407 min = 1 between = 0.4726 avg = 11.6 overall = 0.2526 max = 18 Wald chi2(11) = . corr(u_i, X) = 0 (assumed) Prob > chi2 = . --------------------------------------------------------------------------------- ROA_win05 | Coef. Std. Err. z P>|z| [95% Conf. Interval] ----------------+---------------------------------------------------------------- Ln_Revenue | 3.983084 .4894103 8.14 0.000 3.023857 4.94231 Ln_LTDTA | -.808216 .175129 -4.61 0.000 -1.151463 -.4649694 CoAge | .0213257 .0316602 0.67 0.501 -.0407271 .0833786 TPSD | -.5895496 .7915406 -0.74 0.456 -2.140941 .9618414 Ind_GSD_by_Year | 3.005267 1.623797 1.85 0.064 -.1773164 6.187851 wGDPpc | .0000421 .0001331 0.32 0.752 -.0002188 .000303 wCPI | .146148 .2199932 0.66 0.506 -.2850308 .5773267 wDCF | -1.30e-12 9.03e-13 -1.43 0.151 -3.06e-12 4.74e-13 wExpgr | .1588356 .0861435 1.84 0.065 -.0100025 .3276737 wGDPgr | -.3078847 .2234746 -1.38 0.168 -.7458869 .1301176 wCons | 3.69e-13 3.35e-13 1.10 0.270 -2.87e-13 1.03e-12 | GSD | L1. | 4.02664 3.165411 1.27 0.203 -2.177452 10.23073 | cL.GSD#cL.GSD | -3.669104 2.380216 -1.54 0.123 -8.334242 .9960344 | _cons | -86.90337 10.13018 -8.58 0.000 -106.7582 -67.04859 ----------------+---------------------------------------------------------------- sigma_u | 13.1045 sigma_e | 6.0774571 rho | .82299012 (fraction of variance due to u_i) --------------------------------------------------------------------------------- .
0 Response to The F or chi2 model statistic has been reported as missing
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