Country-time Dummies and Specification Error

[Anandita Rizki]

Hi all,
Currently, I am doing research about the impact of free trade agreements to trade flow. I have panel data that consist of 86 countries from 1980-2012. I use panel data estimation : Pooled Least Square, RE, and FE. Then I will choose the best model among them. The literature said that I have to include the country-time dummies to account for multilateral trade resistance terms. I don't have any specification error before I included the country-time dummies. But when I included the country-time dummies, there are always a specification error resulted by using .ovtest command in stata. I want to include the multilateral resistance term, but is it okay to impose the dummies to my model since it has experienced a specification error? How to solve it?

I really need your help on that.

[dsghosh]

Hi all
Currently I am using sequential logit of Buis (2007) to understand effect of son preference on contraceptive adoption and choice. My, main predictor is son preference, which is a gender-parity (GP) categorical variable (having 15 categories) with GP(2,1) means 2 living children with 1 living son as reference category. The response variable is contraceptive adoption and choice (1=not using, 2=using natural method, 3=using modern method). There are a number of controls. have found out the odds ratios simply using command xi: seqlogit Depvar i.Indepvars, or robust. Now I want to find out transitional probabilities of contraceptive adoption and choice (transition 1, is adoption i.e. using or not-using; and transition 2 is choice between natural and modern method ) for related to Gender-parity variable i.e. main predictor variable. I can not use 'ofinterest' in the equation since it always wants 'over'. I don't have any 'over' variable. so seqlogitdecomp is also not working.

After many attempts, I just could not do it. if anybody is having syntax then pls. help me out.

[Maarten Buis]

@dsgosh: This is a separate question, please start your own thread. I have an answer, but it would be unfair to Anandita if I would post it on her thread. So I will post it as soon as you started your own thread.

[Nick Cox]

Anandita's question is also cross-posted at http://stats.stackexchange.com/quest...fication-error

Cross-posting is not prohibited in either forum, but here we have made it explicit that you should tell us about it. See http://www.statalist.org/forums/help Section 8. That way, people can check to see if comments have already been made on the other forum. As someone intermittently active on Cross Validated, I add that telling them about the cross-posting would widely be considered courteous.