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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.
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Alejo et al. (2025) studied this question.
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