area specific linear time trend coding

[Katie Zhang]

the data is monthly level data.

Coding of the time index variables are as follows:

Year: 2005-2018
Month: 1-12
Year_Month: 1-168
Year_sequence: 1-14
Month_sequence: 1-12

I expect that each area has specific trend. How to control for area specific trend (linear)?

xtset area_id Year_Month
            xtreg Y X  ??????, fe r

Thanks!!!!

[Katie Zhang]

Is the below one good???

xtset area_id Year_Month
            xtreg Y X i.Year i.Month c.Year_Month#i.area_id

Or this one:

            xtset area_id Year_Month
            xtreg  Y X  c.Year_Sequence#i.area_id  c.Month_Sequence#i.area_id

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