Averaged data in panel regression

[Carlo Maria]

Hi there,

I am doing panel data analysis with fixed effects (and also simultaneous quantile regressions) and all my observations are country-year, except one important explanatory variable. This variable is averaged over 5 years, so I have only one observation for a time period of 5 years. I considered assigning this value to all years in that period, but that does not feel right.

Has anyone an idea how I could handle this problem?

[Carlo Lazzaro]

Carlo Maria:
welcome to this forum.
The -fe- estimator wipes out all the time-invariant variables: hence, if the variable you're concerned about has the identical within-panel value, Stata will simply omit it.

[Carlo Maria]

Thank you for the welcome Carlo!

Maybe I should have been more precise with my question: The variable is not identical over the entire panel, but there is only one value for several years in a panel. My panel data are from 1990 - 2018, but the variable concerned has only one observation respectively for the periods 1989-1993, 1994-1998, 1999-2004, 2005-2009, 2010-2014 and 2017-2022. So I am wondering how I can make use of these observations within the context of a fixed effects regression and/or a quantile regression analysis.

Best regards,
Carlo

[Carlo Lazzaro]

Carlo Maria:
the following toy-example may be useful:

 set obs 10
Number of observations (_N) was 0, now 10.

. g id=1 in 1/5


. replace id=2 in 6/10


. bysort  id: g year=2021+_n

. bysort id (year): replace wanted=wanted[_n-1] if wanted[_n]==.


. list

     +--------------------+
     | id   year   wanted |
     |--------------------|
  1. |  1   2022     1000 |
  2. |  1   2023     1000 |
  3. |  1   2024     2000 |
  4. |  1   2025     2000 |
  5. |  1   2026     2000 |
     |--------------------|
  6. |  2   2022     1000 |
  7. |  2   2023     1000 |
  8. |  2   2024     2000 |
  9. |  2   2025     2000 |
 10. |  2   2026     2000 |
     +--------------------+

.

[Carlo Maria]

I will try that, thank you!

Best regards,
Carlo