Hello,
I have panel dataset for 12 industries (N=12) over 2006-2017 (T=11). In order to be sure about the use of the fixed effect model, I have conducted the Hausman test which confirmed my choice.
However, my question is whether it is okay to run such regression where N is very similar to T? My regression would be:
xtreg employment computer_use c.using_computer#i.industry degree, fe
If it is okay, is the only risk that my coefficient will be unprecise or should I worry about other issues?
I have panel dataset for 12 industries (N=12) over 2006-2017 (T=11). In order to be sure about the use of the fixed effect model, I have conducted the Hausman test which confirmed my choice.
However, my question is whether it is okay to run such regression where N is very similar to T? My regression would be:
xtreg employment computer_use c.using_computer#i.industry degree, fe
If it is okay, is the only risk that my coefficient will be unprecise or should I worry about other issues?
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