1. What does he exactly mean?
2. How can I test this? to see all aspect of the robustness test( heteroskedastisity and misespesificatio or other aspect)
Code:
local hmax = 1 forv h = 0/`hmax' { reghdfe lnfertility`h' l(0/2)dum_recession l(1/2)lnfertility , absorb( i.ifscode i.year) }
Code:
HDFE Linear regression Number of obs = 2,974 Absorbing 2 HDFE groups F( 5, 2807) = 3531.65 Prob > F = 0.0000 R-squared = 0.9996 Adj R-squared = 0.9996 Within R-sq. = 0.8628 Root MSE = 0.0300 ------------------------------------------------------------------------------- lnfertility1 | Coef. Std. Err. t P>|t| [95% Conf. Interval] --------------+---------------------------------------------------------------- dum_recession | --. | -.0041092 .0018641 -2.20 0.028 -.0077644 -.0004539 L1. | -.0017355 .0018558 -0.94 0.350 -.0053743 .0019033 L2. | -.0023126 .0018611 -1.24 0.214 -.0059618 .0013366 | lnfertility | L1. | 1.480848 .0269853 54.88 0.000 1.427935 1.533761 L2. | -.5983321 .0264009 -22.66 0.000 -.6500993 -.546565 | _cons | 1.976596 .1139087 17.35 0.000 1.753243 2.199949 ------------------------------------------------------------------------------- Absorbed degrees of freedom: -----------------------------------------------------+ Absorbed FE | Categories - Redundant = Num. Coefs | -------------+---------------------------------------| ifscode | 142 0 142 | year | 21 1 20 | -----------------------------------------------------+
and with using VCE
Code:
local hmax = 1 forv h = 0/`hmax' { reghdfe lnfertility`h' l(0/2)dum_recession l(1/2)lnfertility , absorb( i.ifscode i.year) vce(cluster ifscode) }
Code:
HDFE Linear regression Number of obs = 2,974 Absorbing 2 HDFE groups F( 5, 141) = 1131.20 Statistics robust to heteroskedasticity Prob > F = 0.0000 R-squared = 0.9996 Adj R-squared = 0.9996 Within R-sq. = 0.8628 Number of clusters (ifscode) = 142 Root MSE = 0.0300 (Std. Err. adjusted for 142 clusters in ifscode) ------------------------------------------------------------------------------- | Robust lnfertility1 | Coef. Std. Err. t P>|t| [95% Conf. Interval] --------------+---------------------------------------------------------------- dum_recession | --. | -.0041092 .0023937 -1.72 0.088 -.0088414 .000623 L1. | -.0017355 .0021453 -0.81 0.420 -.0059766 .0025056 L2. | -.0023126 .0020043 -1.15 0.251 -.006275 .0016499 | lnfertility | L1. | 1.480848 .1020886 14.51 0.000 1.279026 1.68267 L2. | -.5983321 .095414 -6.27 0.000 -.7869592 -.4097051 | _cons | 1.976596 .226157 8.74 0.000 1.529499 2.423693 ------------------------------------------------------------------------------- Absorbed degrees of freedom: -----------------------------------------------------+ Absorbed FE | Categories - Redundant = Num. Coefs | -------------+---------------------------------------| ifscode | 142 142 0 *| year | 21 0 21 | -----------------------------------------------------+ * = FE nested within cluster; treated as redundant for DoF computation
if I understood correctly, so it seems that without using the standard error the result is more reliable.
thank you so much
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