how to do fixed effects regression

[John Lei]

Hey my regression does not work, how do I do a fund and time fixed effectes regression? What do I have to do prior with xtset. And for the ttest do I have to do sth. like level (99) at the end for 1% niveau

[John Riveros]

you might as well type " help xtreg " in your stata command bar. or search topics related to panel regression.

A basic example of fixed effects follow as.

xtreg depvar var1 var2 var 3 ..., fe

If you want random effects, simply change fe at the end for " re ".

Now, you may want to tell stata what kind of data is handling.

so an example of xtset command follows as:

xtset id_code year

where id_code is a variable that doesn't change over time. and year is the time variable.

to generate a single id variable something like this should work.

egen id_code= group(variable_that_does_not_change)