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  • Using absolute value in a fixed effects model

    I'm wanting to find the absolute value for change over time in a fixed-effects model. I'm using Stata MP 16.

    My outcome variable is child maltreatment data for states over time (2006-2016). My independent variables are dummy-coded policy variables (e.g., if a state added a centralized intake system in 2009, it gets a 0 for 2006-2008 and a 1 for 2009-2016). I'm hoping to have the xtreg output coefficients reflect the absolute value difference in maltreatment rather than a directional difference. Is there a Stata option for this? Or will we need to manually create a new dependent variable?

    Thank you!

  • #2
    Elizabeth:
    welcome to this forum.
    If you're interested in variation in the number of chlld maltreatments over years, your regressand should be expressed in counts.
    Kind regards,
    Carlo
    (Stata 19.0)

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    • #3
      Thanks Carlo! We did explore the outcome as counts, but found treating it as continuous (we've calculated rates and log-transformed) seems to be best, based on analyses and even running it with a poisson distribution and Stata automating a message that was incorrect and to interpret with caution!

      We are still hoping to find a way to use absolute value of the change over time to make our coefficients easier to interpret.

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      • #4
        Elizabeth:
        -I do not think that you can get what you're after via -xtreg,fe-:
        -poisson- throws that warning message you reported whenever the regressand takes on non-integer values;
        -as -xtpoisson- allows conditional fixed effects (which differ from the fixed effectsw that can be calculated under -xtreg-). Perhaps you can use a -poisson- regression with -i.panlid- among predictors to fit a -fe- specification to your dataset, and the use -predict events, n- to estimate the cases (and their within panel variation) as time goes by.
        Kind regards,
        Carlo
        (Stata 19.0)

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