How to control MRTs in PPML Gravity Model

[Aqib Khursheed]

Can i control MRTs in PPML method by estimating exporter, importer and year group dummies by following command

. ppml exp lndist cont rta lnpgdpi lnpgdpj efwi efwj lnpopi lnpopj dexporter dimporter dyear

I have use following commands to generate and group the dummies

. qui tab year, g(dyear)
. qui tab exporter, g(dexporter)
. qui tab importer, g(dimporter)
. egen dyear=group(dyear*)
. egen dexporter=group(dexporter*)
. egen dimporter=group(dimporter*)

[Phil Bromiley]

You didn't get a quick answer. You'll increase your chances of a useful answer by following the FAQ on asking questions - provide Stata code in code delimiters, readable Stata output, and samp[e data using dataex.

When you use group, you are numerically identifying groups. But, that is not a meaningful control for group - group 100 is not 100 times group 1. i.dimporter is probably more likely to be what you want.