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Xtreg stata4/7/2024 To clarify what I was asking for when in comes to Stata: I really have not been able to find any good info on this when it comes to panel data and fixed-effects, but only for cross-sections and OLS. As long as the residuals are ''sufficiently'' normally distributed I can make use of t-tests for inference (since I have 50 countries). These residuals seem approximately normally distributed, so I concluded that it's ok do to inference because I have 50 countries. Then I analyzed a simple histogram of the distrubution of these residuals. In order to analyze whether the assumption of normally distributed idiosyncratic errors is true, I examined the distrubution of the residuals after first running a FE regression and then saving the residuals by typing ''predict residuals, e'' in Stata 12. My question concerns the assumption that the idiosyncratic errors (the factors that change over time and that we do not observe) must be normally distributed, unless I have a big number of countries and few time periods (according to Wooldridge's standard textbook), in order to perform inference with t-statistic and so on. The background is the following: I'm doing a fixed-effects analysis (FE) on panel data, with about 50 countries, and around 4 time periods. So basically I have a question about econometrics in general and Stata in particular. I'm a swedish undergraduate economics student.
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