Hello everybody,
I am new here and since I am not that experienced with STATA I would like to ask you how to provide such a baseline regression in STATA using dialog box, as follows Statistics > Treatment effects > Continuous outcomes > Difference in differences (FE) or even by command xtdidregress.
I have a panel dataset consisting of banks (their names) + some other factors (8) influencing the dependent variable (1) for period of time (2012-2019).
yijt = α + β1 * (Treatmentit) + β2 * (PostPeriodt) + β3 * (Treatmentit * PostPeriodt ) + β4 * factor1ijt+⋯+βn * factorNijt+ δit + ϴit + εit
yijt stand for dependent variable of a bank i at time t in country j
Treatmentit stands for variable that equals 1 if bank i at time t has the factor1 variable greater than or equal to the chosen threshold and takes value 0 if it is lower than threshold
PostPeriodt stands for variable that equals 1 the year (2014) that the specific policy was adopted and takes value 0 prior the time the policy was introduced
factorNijt stands for all the factors influencing dependent variable for a bank i at time t in country j
δt and θt stands for year and bank fixed effects
εit stands for errors
Errors have to be clustered on bank level (if I understoof it correctly - based on their names as each of banks is specific)
So far I have created dummy variables:
Treat which gets 1 if it in Treatment group and 0 if its in Reference group
PostPeriod which gets 1 if years are >=2014 and 0 if <2014
Treat_PostPeriod which is the interaction of both - if Treat ==1 and PostPeriod == 1 then Treat_PostPeriod =1
Even though I have all variables and dummies ready I do not know how to continue and process with DiD and get fixed effects for bank and year.
In my opinion, as it is abovementioned in baseline regression, I should get a regression table which shows me effect of each of the variables on the dependent variable - correct me if I am wrong. Although what I get when I try to put variables correctly into the cells of dialog box for DiD (FE) I get only 3 variables that are explained.
Last question : in case of such a regression and used method - what tests you would reccomend ? Can you also provide some of the code, please ?
Thank you very much. I have been looking for answers on forums + videos but this seems to me as a specific case which with my experience I am not able to solve.
I am new here and since I am not that experienced with STATA I would like to ask you how to provide such a baseline regression in STATA using dialog box, as follows Statistics > Treatment effects > Continuous outcomes > Difference in differences (FE) or even by command xtdidregress.
I have a panel dataset consisting of banks (their names) + some other factors (8) influencing the dependent variable (1) for period of time (2012-2019).
yijt = α + β1 * (Treatmentit) + β2 * (PostPeriodt) + β3 * (Treatmentit * PostPeriodt ) + β4 * factor1ijt+⋯+βn * factorNijt+ δit + ϴit + εit
yijt stand for dependent variable of a bank i at time t in country j
Treatmentit stands for variable that equals 1 if bank i at time t has the factor1 variable greater than or equal to the chosen threshold and takes value 0 if it is lower than threshold
PostPeriodt stands for variable that equals 1 the year (2014) that the specific policy was adopted and takes value 0 prior the time the policy was introduced
factorNijt stands for all the factors influencing dependent variable for a bank i at time t in country j
δt and θt stands for year and bank fixed effects
εit stands for errors
Errors have to be clustered on bank level (if I understoof it correctly - based on their names as each of banks is specific)
So far I have created dummy variables:
Treat which gets 1 if it in Treatment group and 0 if its in Reference group
PostPeriod which gets 1 if years are >=2014 and 0 if <2014
Treat_PostPeriod which is the interaction of both - if Treat ==1 and PostPeriod == 1 then Treat_PostPeriod =1
Even though I have all variables and dummies ready I do not know how to continue and process with DiD and get fixed effects for bank and year.
In my opinion, as it is abovementioned in baseline regression, I should get a regression table which shows me effect of each of the variables on the dependent variable - correct me if I am wrong. Although what I get when I try to put variables correctly into the cells of dialog box for DiD (FE) I get only 3 variables that are explained.
Last question : in case of such a regression and used method - what tests you would reccomend ? Can you also provide some of the code, please ?
Thank you very much. I have been looking for answers on forums + videos but this seems to me as a specific case which with my experience I am not able to solve.
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