**Background:**
I am conducting a panel data analysis to explore the dynamic relationships between GDP, energy consumption, and energy prices in OECD countries, with a focus on understanding the impact of oil price shocks.
**Objective:**
My goal is to apply the panel local projection method in Stata to estimate the effects of oil price shocks on the aforementioned variables over time.
**Data Description:**
My dataset consists of annual observations from 1990 to 2020 for 30 OECD countries, including variables for GDP, energy consumption rates, and oil prices.
**Specific Question:**
I seek guidance on how to properly set up and execute a panel local projection in Stata, particularly:
- How do we code the local projection model to estimate the dynamic effects of oil price shocks?
**Seeking Advice On:**
- Any example codes or resources specifically tailored to panel local projections in Stata.
- Best practices for checking the robustness of the projections.
- Insights into the assumptions underlying the local projection method in the context of macroeconomic data.
Thank you in advance for your help and guidance!
I am conducting a panel data analysis to explore the dynamic relationships between GDP, energy consumption, and energy prices in OECD countries, with a focus on understanding the impact of oil price shocks.
**Objective:**
My goal is to apply the panel local projection method in Stata to estimate the effects of oil price shocks on the aforementioned variables over time.
**Data Description:**
My dataset consists of annual observations from 1990 to 2020 for 30 OECD countries, including variables for GDP, energy consumption rates, and oil prices.
**Specific Question:**
I seek guidance on how to properly set up and execute a panel local projection in Stata, particularly:
- How do we code the local projection model to estimate the dynamic effects of oil price shocks?
**Seeking Advice On:**
- Any example codes or resources specifically tailored to panel local projections in Stata.
- Best practices for checking the robustness of the projections.
- Insights into the assumptions underlying the local projection method in the context of macroeconomic data.
Thank you in advance for your help and guidance!
