Stata Panel Data Exclusive -

mutually exclusive dummy variables

Based on your request, it seems you are looking for an explanation or guide on how to handle (binary indicators) within Stata panel data .

If this list returns values, your data is not exclusive (e.g., a firm is marked as both Private and Public, or missing all categories). stata panel data exclusive

respect panel boundaries

These (no cross‑unit contamination) only after xtset . mutually exclusive dummy variables Based on your request,

Key options:

Random Effects (xtreg, re)

Exclusive nuance:

The "exclusive" part is the collapse option, which reduces instrument proliferation. Most tutorials ignore how too many instruments overfit the model. An exclusive user compares Sargan/Hansen p-values before and after collapse. Key checks: instrument count, Hansen test, AR(1)/AR(2) tests

testparm i.id // after LSDV regression

  • Key checks: instrument count, Hansen test, AR(1)/AR(2) tests for residuals.
  • Use sparsely lagged instruments; collapse instruments to avoid instrument proliferation.
  • Use xtdpd or xtabond2; example:

    * Create dummies named 'status_1', 'status_2', 'status_3' tabulate status, gen(status_)

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