Dear all,
I am working on regressing patents on a series of variable using Stata. To this end I am using both xtpoisson and xtnbreg. In the process of the analysis of the results, I am now considering if I should add time dummies or a time trend. On this regard, I have two questions:
1) What is the best approach to understand if time dummies or a time trend should be inserted?
2) What is the most effective procedure to insert them in the xt regression? Below there is my attempt
*** time dummies
xtpoisson f1.patents regulation competition $control i.year, fe
xtnbreg f1.patents regulation competition $control i.year, fe
***** Time trend
gen ttrend=0
forvalues i=1/10 { /*if these are the years for the sample*/
replace ttrend=`i' if year==1999+`i'
}
*
xtpoisson f1.patents regulation competition $control ttrend, fe
xtnbreg f1.patents regulation competition $control ttrend, fe
Thanks a lot for any suggestions you might have.
Best Regards
I am working on regressing patents on a series of variable using Stata. To this end I am using both xtpoisson and xtnbreg. In the process of the analysis of the results, I am now considering if I should add time dummies or a time trend. On this regard, I have two questions:
1) What is the best approach to understand if time dummies or a time trend should be inserted?
2) What is the most effective procedure to insert them in the xt regression? Below there is my attempt
*** time dummies
xtpoisson f1.patents regulation competition $control i.year, fe
xtnbreg f1.patents regulation competition $control i.year, fe
***** Time trend
gen ttrend=0
forvalues i=1/10 { /*if these are the years for the sample*/
replace ttrend=`i' if year==1999+`i'
}
*
xtpoisson f1.patents regulation competition $control ttrend, fe
xtnbreg f1.patents regulation competition $control ttrend, fe
Thanks a lot for any suggestions you might have.
Best Regards