Dummy variables in pseudo-panel models

[Duy To]

Dear all,

When I incorporate dummies in pseudo-panel models, should I use the dummy variable itself, or should I average them and interpret it as a "proportion"?

Thank you.

[Carlo Lazzaro]

Duy:
you might be interested in: https://warwick.ac.uk/fac/soc/econom...4b273c028f6f78