is large), check for unit roots using xtunitroot to avoid spurious regressions. 4. Advanced Techniques
* Create a lag variable (previous year's value) gen lag_gdp = L.gdp stata panel data
predict fe_u, u // Individual effects predict fe_resid, e // Residuals predict fe_xb, xb // Linear prediction is large), check for unit roots using xtunitroot
testparm i.year
The big question in panel analysis is whether to use or Random Effects (RE) . Panel Data Analysis Fixed and Random Effects using Stata u // Individual effects predict fe_resid