Random Effects vs Fixed Effects estimators

This video provides a comparison between Random Effects and Fixed Effects estimators.

[skianton]

Ben, you are a legend.
The only thing that bugs me is how you add a "R" between alpha and "i", it's a funny quirk =)

[jessyjkn]

Fantastic video!!!! This clarifies so many questions

[Meltedsnake]

@Ben Lambert why is it that towards the end you say: "in FE alpha_i is some fixed parameter that needs to be estimated by adding individual level dummies" when fixed effects by construction removes these constant parameters i.e. dummies and time invariant constants.

[ilhammmmdzad]

Could you please explain why random effects model is more efficient than fixed effects model ?

[asdfghjkl]

Thank you so much! You mention at the end that there is a particular test which shows corellation between alpha and independent variable. Could you please tell which one is that and how can I do it in Stata?

[NNNN]

I think there was an error: in either RE or FE, alpha_i is random. Alpha_i is not fixed as described in the video in FE model.

[janemacnaughton]

comparing to 'what we discussed before' not helpful.