Testing for slope heterogeneity bias in the fixed-effects estimator
In this article, we discuss a postestimation command, xthbtest , to test for the validity of the fixed-effects estimation in the presence of heterogeneity in panel-data settings. The procedure is based on the conditions to obtain the mean effect across individuals by comparing it with the mean-group alternative estimator. An empirical application with a Solow-type growth model illustrates its implementation.
Authors
- Javier Alejo (ORCID: https://orcid.org/0000-0003-0681-7137)
- Antonio F. Galvao (ORCID: https://orcid.org/0000-0003-4406-4041)
Institutions
- Universidad de la República de Uruguay (UY)
- Universidad Argentina de la Empresa (AR)
- Universidad de Montevideo (UY)
- Michigan State University (US)
Publication Details
- Journal
- The Stata Journal Promoting communications on statistics and Stata
- Published
- 2025-12-01
- DOI
- https://doi.org/10.1177/1536867x251398607
- Primary Topic
- Spatial and Panel Data Analysis
- Type
- article
- Field-Weighted Citation Impact
- 0.00