Resumen de Testing for slope heterogeneity bias in the fixed-effects estimator

Javier Alejo, Antonio F. Galvao, Gabriel Montes Rojas

• In this article, we discuss a postestimation command, xthbtest, to test for the validity of the fixed-effects estimation in the presence of heterogeneity in panel-data settings. The procedure is based on the conditions to obtain the mean effect across individuals by comparing it with the mean-group alternative estimator. An empirical application with a Solow-type growth model illustrates its implementation.