Dear Statalist,
I am currently doing a fixed-effects panel regression and try to study the effects of private credit booms before the occurence of a financial crisis on the economic recovery after the crisis.
I have a panel-dataset covering 17 developed economies (Japan, US, Germany , ...). The dataset holds macroeconomic aggregates like gdp, interest rates, public debt, ... for the 17 countries for the years 1870 - 2016.
For me, it makes sense to include country fixed effects. But how could I justify the use of fixed effects reasonably?
I used the following command:
pk_fin corresponds to a financial crisis
pk_norm corresponds to a non-financial crisis
d1-d17 would be my country fixed effects
Is there any possible stata-command to show in numbers, that country fixed effects are reasonable?
Thank you very much in advance
I am currently doing a fixed-effects panel regression and try to study the effects of private credit booms before the occurence of a financial crisis on the economic recovery after the crisis.
I have a panel-dataset covering 17 developed economies (Japan, US, Germany , ...). The dataset holds macroeconomic aggregates like gdp, interest rates, public debt, ... for the 17 countries for the years 1870 - 2016.
For me, it makes sense to include country fixed effects. But how could I justify the use of fixed effects reasonably?
I used the following command:
Code:
foreach v in `irvars5' { forvalues i =1/5 { //LHS-VARIABLES are lrgdp lriy lcpi rprv rpub //RHS-VARIABLES are constant of normal recessions (pk_norm), constant of // financial recessions (pk_fin), beta*(excess_private) for // normal or financial crises, // history of l-lags (`rhs8a'), country fixed effects (d1-d17) qui reg `v'`i' pk_norm pk_fin excess_prv `rhs8a' d1-d17 /// if (pk_fin==1|pk_norm==1) , noconstant vce(cluster iso) } }
pk_norm corresponds to a non-financial crisis
d1-d17 would be my country fixed effects
Is there any possible stata-command to show in numbers, that country fixed effects are reasonable?
Thank you very much in advance
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