Stata Panel Data Exclusive Jun 2026

xtreg y x1 x2, be

| Mistake | Correct | |---------|---------| | Using reg without clustering | xtreg, fe robust or reg, vce(cluster id) | | Including time-invariant vars in FE | Dropped automatically – use RE or hybrid | | Hausman with non-spherical errors | Use xtoverid after RE | | Ignoring serial correlation | Use xtreg, fe with lagged DV or xtserial | | GMM with too many instruments | Collapse instruments: collapse option in xtabond2 (external) | stata panel data exclusive

While vce(cluster id) handles the first two, it ignores the third. The exclusive solution is the xtscc command. xtscc y x1 x2, fe Use code with caution. xtreg y x1 x2, be | Mistake |