Dear all,
I have two questions:
1. I am conducting a Fixed Effects Regression the appropriateness of which I want to test for using the Ramsey RESET test. There are two previous posts on this topic which were very helpful:
http://www.stata.com/statalist/archi.../msg01236.html
http://www.stata.com/statalist/archi.../msg00612.html
I now manually demeaned the data using the center function and regressed the (demeaned) dependent on the (demeaned) explanatory variables. Before conducting the RESET test I need to correct for the degrees of freedom lost by demeaning though -as mention in the earlier post by Prof Schaffer. Can somebody tell me how to do that?
2. As I have evidence of serial autocorrelation as well as heteroskedasticity in my error terms, I have to use the vce(robust) function for my model. As my panel is quite unbalanced, I lose too many degrees of freedom to even calculate an F-Test then. I can test for the joint significance of all my parameters except for the constant using a partial F-Test though. Should I be worried about the inability of STATA to conduct an F-test? (Unfortunately balancing the panel is not an option - I'd be left with nothing then) Are there any suggestions on how to proceed in this situation?
Thanks in advance for any help anyone can give. It will be much appreciated.
Kind regards
Judith
I have two questions:
1. I am conducting a Fixed Effects Regression the appropriateness of which I want to test for using the Ramsey RESET test. There are two previous posts on this topic which were very helpful:
http://www.stata.com/statalist/archi.../msg01236.html
http://www.stata.com/statalist/archi.../msg00612.html
I now manually demeaned the data using the center function and regressed the (demeaned) dependent on the (demeaned) explanatory variables. Before conducting the RESET test I need to correct for the degrees of freedom lost by demeaning though -as mention in the earlier post by Prof Schaffer. Can somebody tell me how to do that?
2. As I have evidence of serial autocorrelation as well as heteroskedasticity in my error terms, I have to use the vce(robust) function for my model. As my panel is quite unbalanced, I lose too many degrees of freedom to even calculate an F-Test then. I can test for the joint significance of all my parameters except for the constant using a partial F-Test though. Should I be worried about the inability of STATA to conduct an F-test? (Unfortunately balancing the panel is not an option - I'd be left with nothing then) Are there any suggestions on how to proceed in this situation?
Thanks in advance for any help anyone can give. It will be much appreciated.
Kind regards
Judith