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Stata16: Estimate Panel Data Models using PCSE Technique (Part 2)

What is Panel-Corrected Standard Errors (PCSE) Technique? 1) Controls for cross-sectional dependence, autocorrelation and heteroscedasticity. 2) Applicable to N less than T panel data structure – when the number of cross-sections is LESS than the time dimensions. 3) PCSE is a static panel data technique…suitable for long-run analysis. This video replicates model [1] in Adeleye et al (2022) “Does Globalization and Energy Usage Influence Carbon Emissions in South Asia? An Empirical Revisit of the Debate”. Environmental Science and Pollution Research https://doi.org/10.1007/s11356-022-24... Article available on my RG profile. Kindly make a request and I will send it to you. Baseline model: 𝐥𝐧〖〖𝑪𝑶〗_𝟐〗_𝒊𝒕 = 𝜷_𝟎 + 𝜷_𝟏 〖𝐥𝐧𝑷𝑪〗_𝒊𝒕 + 𝜷_𝟐 〖𝑷𝑮𝑹〗_𝒊𝒕 + 𝜷_𝟑 〖𝑹𝑬𝑵〗_𝒊𝒕 + 𝜷_𝟒 〖𝑹𝑸〗_𝒊𝒕 + 𝜺_𝒊𝒕 [1] Carbon emissions expressed as a linear function of per capita GDP, population growth, renewable energy and regulatory quality PCSE Analytical Procedure: 1) Specify the model 2) Check for multicollinearity (perform correlation analysis) 3) Test for cross-sectional dependence* (Pesaran CD Test) 4) Perform unit root test (CIPS, CADF) 5) Test for cointegration (Westerlund Test) 6) Estimate the model (using PCSE) CrunchEconometrix videos should be supported by relevant readings from econometrics textbooks, journal articles and other resources to properly harness the simplicity of the video tutorials. Suggested References: 1) Adeleye, B. N., Akam, D., Inuwa, N., James, T. H., Basila, D. (2022) “Does Globalization and Energy Usage Influence Carbon Emissions in South Asia? An Empirical Revisit of the Debate”. Environmental Science and Pollution Research https://doi.org/10.1007/s11356-022-24... 2) Adeleye, B. N., Akam, D., Inuwa, N., Olarinde, M., Okafor, V., Ogunrinola, I., Adekola, P. (2021). “Investigating growth-energy-emissions trilemma in South Asia”. International Journal of Energy Economics and Policy, https://doi.org/10.32479/ijeep.11054 3) Adeleye, B. N., Bengana, Boukhalkhal, Shafiq, and Abdulkareem (2022). “Does human capital tilt the population-economic growth dynamics? Evidence from Middle East and North African Countries”. Social Indicators Research https://doi.org/10.1007/s11205-021-02... 4) Adeleye, B. N., Ola-David, O., Jamal, A., Arumugam, S., (2021) “Moderation analysis on tourism–growth–emissions nexus in South Asia”. Journal of Policy Research in Tourism, Leisure & Events (Special Issue) https://doi.org/10.1080/19407963.2021... CrunchEconometrix videos should be supported by relevant readings from econometrics textbooks, journal articles and other resources to properly harness the simplicity of the video tutorials.