### Friday, February 24, 2006

## Re: st: Chow test and panel estimation

Yes, you can apply the method describe by William...

Mensaje citado por "D.Christodoulou" <d.christodoulou@bangor.ac.uk>:

> Dear Statalisters, > > Following William Gould's guideliness on how to construct a simple Chow test > (http://www.stata.com/support/faqs/stat/chow.html), I would like to ask if > this > procedure is safe for reproduction following a panel data estimation, such as > the Between Effects estimation of: > > y_it = a + bX_it + C_i + e_it > > That is to say, estimate the above model as -xtreg, be wls- for the pooled > model > t=1,2,...,10 and then estimate the same model for two separate periods > t1=1,2,..,5 and t2=6,7,..,10. Then, compute their error sum of squares and > compute the simple linear Chow test. > > The problem as I understand it, is that the pooled model will be based on > averages of i over the entire t=1,2,...,10, where the two sub-estimations > will > be based on averages of i over t1=1,2,..,5 and over t2=6,7,..,10. > > Do you think that the computation of the Chow test as I described it above > for a > BE estimation is correct? If not, I would appreciate it if you could offer > some > advice or even guide me through some useful references. All comments are > welcome! > many thanks, > > Dimitris > > -- > This mail sent through http://webmail.bangor.ac.uk > * > * For searches and help try: > * http://www.stata.com/support/faqs/res/findit.html > * http://www.stata.com/support/statalist/faq > * http://www.ats.ucla.edu/stat/stata/ >

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Tag: statalist