Fixed effects (FE) is used to control for omitted variables that differ between cases but are constant over time.Dynamic Models: Mean Group, Pooled Mean Group, Dynamic Fixed Effects.Static Models are Fixed Effects, Random Effects.* Running Hausman test to choose between FE and RE: Static Models: Fixed Effects and Random Effects *1.1.
* If says 'Not Found', then you need to install it. * If you are not sure, then go to Help -> Stata Command -> type estout. * If you haven't installed the estout package yet, run: ssc install estout, replace Twoway scatter $ylist Year, msymbol(circle_hollow) || connected y_mean_t Year, msymbol(diamond) To check for heterogeneity across years visually, run: Twoway scatter $ylist idc, msymbol(circle_hollow) || connected y_mean_x idc, msymbol(diamond) To check for heterogeneity across countries visually, run: * Tip: In case if you misdefined a global macro, delete it by running: macro drop xlist Defining dependent and independent variables: Get correlation matrix with 5% significance level: Specify cross-sectional (x) and time-series (t) variables: Label variable GDP "Gross Domestic Product" Reshape wide y, i(idc Year) j(Variable) string
* Download and open the dataset using Stata: LINK * To start recording the commands and outputs: