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  • xtpoisson or xtnbreg

    Hello everyone.

    I am working with a count-dependent variable that takes on values 0,1,2,.......,11,12. I have panel data for 3 years. I am unable to decide whether the Poisson model or negative binomial is a good fit. I saw somewhere to use the negative binomial if the standard deviation is greater than 1 or in some places if the mean and variances are not equal. The mean and standard deviation of my dependent variable y are 9.987459 and 1.548862 respectively. I have tried to fit xtpoisson with fixed effect and it works. But with xtnbreg my model doesn't converge at all, it carries out iteration after iteration.

    I don't know which model should I use. Any suggestion is appreciated.

    Last edited by Lubaba Prottoy; 06 Jun 2024, 11:19.

  • #2
    Dear Lubaba Prottoy,

    Just use Poisson with FE, among other things, it is much more robust.

    Best wishes,

    Joao

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    • #3
      In addition to Joao's helpful reply, also see #3: https://www.statalist.org/forums/for...-poisson-model

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