OLS-Diagnostics-Stata

Comprehensive Stata do-file for testing and correcting violations of classical OLS assumptions

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Description

This repository contains a single Stata do-file that implements a full suite of diagnostic tests and remedies for violations of the classical linear regression assumptions in cross-sectional data:

1. Model Specification
2. Heteroskedasticity
3. Multicollinearity
4. Spatial Autocorrelation
5. Endogeneity
6. Residual Normality
7. Outlier & Influence Detection

Usage

1. Clone this repository:

   git clone https://github.com/your-username/OLS-Diagnostics-Stata.git

2. Open Stata and run the do-file
3. Review the log output and graphs to identify any assumption violations.
4. Apply the suggested corrective commands included in each section if needed.

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File Structure

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├── Regression Assumptions.do   # Main Stata script with all tests & remedies
├── Lawsch85.xlsx               # Dataset used to run the script
└── README.md                   # Project documentation

Contributing

Contributions are welcome! Please open issues or submit pull requests at
https://github.com/pablo-reyes8

License

This project is licensed under the Apache License 2.0.

Contribution

Feel free to open issues or submit pull requests to add more diagnostics, improve formatting, or support panel/time-series extensions.