Hello everybody :-)
I'm currently working on a dyadic data set, which I want to analyze by using a panel data regression. I've already grouped my data, so my panel variable is called "pairid" (combination of country and sector) and "year" is declared to be my time variable.
xtset pairid year, yearly
So far, no problems. But when I use the command xtreg (...) , fe some of my independent variables are omitted and I guess thtat that's because they are dummy variables which happen to be constant for each pair, so Stata 'ignores' them. Then when I use the command xtreg (...), re cluster(country) instead the variables are not omitted and I get generally logic results, but they're not equal to the correct answer. I'm assuming that's because I use random effects instead of fixed effects. But again, as soon as I use fixed effects, many of the variables are omitted.
Does anybody happen to know a solution for this? Thank you in advance! :-)
Best regards,
Frederik
I'm currently working on a dyadic data set, which I want to analyze by using a panel data regression. I've already grouped my data, so my panel variable is called "pairid" (combination of country and sector) and "year" is declared to be my time variable.
xtset pairid year, yearly
So far, no problems. But when I use the command xtreg (...) , fe some of my independent variables are omitted and I guess thtat that's because they are dummy variables which happen to be constant for each pair, so Stata 'ignores' them. Then when I use the command xtreg (...), re cluster(country) instead the variables are not omitted and I get generally logic results, but they're not equal to the correct answer. I'm assuming that's because I use random effects instead of fixed effects. But again, as soon as I use fixed effects, many of the variables are omitted.
Does anybody happen to know a solution for this? Thank you in advance! :-)
Best regards,
Frederik
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