Stata
What it is: Statistical software for economists and researchers. Panel data, instrumental variables, regression analysis.
What It Does Best
Econometrics. Gold standard for economics research. Panel data, time series, causal inference all built-in.
Clean syntax. Simple, readable commands. Easier to learn than R, more powerful than SPSS.
Data management. Excellent tools for cleaning and reshaping data. Better than most statistical software.
Key Features
Panel data: Fixed effects, random effects, difference-in-differences
Time series: ARIMA, VAR, cointegration tests
Causal inference: IV regression, regression discontinuity, matching
Survey methods: Complex sampling, weights, stratification
Reproducible: Do-files for scripted, reproducible analysis
Pricing
Stata/IC: $595 (up to 2,048 variables)
Stata/SE: $1,195 (up to 32,767 variables)
Stata/MP: $1,595+ (multiprocessor, faster)
Perpetual license: One-time fee, optional annual updates
When to Use It
✅ Economics or policy research
✅ Panel data or time series analysis
✅ Academic research (widely used)
✅ Causal inference methods
✅ Want simpler syntax than R
When NOT to Use It
❌ Machine learning focus (Python/R better)
❌ Very large datasets (limited scalability)
❌ Budget is zero (R is free)
❌ Need deep customization (R more flexible)
❌ Outside economics/health fields
Common Use Cases
Economics research: Labor economics, development, macro analysis
Policy evaluation: Difference-in-differences, regression discontinuity
Health outcomes: Survival analysis, clinical trials
Survey analysis: Complex samples, weighting
Panel data: Longitudinal studies, fixed effects models
Stata vs Alternatives
vs R: Stata cleaner syntax, R more flexible and free
vs SPSS: Stata better for econometrics, SPSS for psychology
vs SAS: Stata academic-focused, SAS enterprise-focused
Unique Strengths
Economics standard: Citation standard in economics journals
Clean syntax: Readable, easier than R for beginners
Panel data: Best tools for longitudinal/panel analysis
One-time purchase: Perpetual license, not subscription
Bottom line: If you're an economist or policy researcher, Stata is the standard. Clean syntax, powerful econometrics, reasonable pricing. R is free but steeper learning curve.