I am interested in some recommendations regarding the use of bootstrapping with panel data.
I appreciate any suggestions on literature and also software that can be used to create the bootstrapping sample.
For analysing panels I would suggest cluster bootstrapping. For a quick explanation you can have a look at Cameron/Trivedi:
https://books.google.it/books/about/Microeconometrics.html?id=TdlKAgAAQBAJ&redir_esc=y
Thanks for the reply Philipp. I will take a look at their book.
Stata allows cluster bootstrapping.
clusterid is just the numeric id of firms/households/individuals/etc.
Clustered standard errors:
xtreg y x, fe vce(cluster clusterid) Bootstrapped clustered standard errors: xtreg y x, fe vce(bootstrap, seed(12345)) cluster(clusterid)
Great! Thanks a lot Philipp. I am using Gretl. I will check if there is a similar command.
Gretl is not a good software. I will recommend you to use stata.
The aims of boostraping is to increase the significance of p_ value, and to get small standard error.
Quantile regression is also the best, since it use boostraping.
Dear Mwoya,
Thanks for the reply and recommendation.
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