I have a data set of N=280 and T =60. I did fisher test for each of my 9 variables. Only two have unit roots at levels and stationary at I(1), rest of the variables are stationary. My question is can I use first difference of the two variables and levels for the stationary variables in the same regression model using fixed effects? Or do I need to use first difference for all the 9 variables. Is Fixed effects estimation still valid with unit roots?
GII = FDI +FemaleFert+GOVTEXP+EDUCATION+POPUL+GDPGROWTH
MY GII and education variables are non stationary at level, so can I use in stata the below command???
xtreg d.GII FDI FEMFER d.EDUC Popul GDP, fe cluster (Country)
or do I need to difference all my variables?
Also what is the purpose of the Cointegration test? if cointegration exists does it mean I can use the non stationary variables in levels using normal fixed effects estimation???
Related Posts with How to proceed with variables with Unit Root or non stationarity using fixed effects estimation??
Format: Fix the number of nonzero digits to be displayedHi everyone, I am struggling with the format option when exporting my regression coefficients to La…
Fixed effect estimator, interaction effect with dummy variable varying within unit and timeHei, I am doing a fixed effect model on a panel of N = 1089 and T = 30 000 (ish). ESGscore = beta…
Coefficient equality test after rifhdregDear all, I would like to perform a coefficient equality test across all five quantiles following r…
Simple approach to fit a multinomial logit model to panel data?I have a longitudinal dataset with 5 time points (age 18, 26, 32, 38, 45) at which patients had oral…
Propensity Score Matching: Identify the matched GroupHi I am using Propensity score matching for my analysis (based on Cross section data, Total observat…
Subscribe to:
Post Comments (Atom)
0 Response to How to proceed with variables with Unit Root or non stationarity using fixed effects estimation??
Post a Comment