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  • PPMLHDFE - lgdp_o and lgdp_d not shown in results

    Dear all,

    I am using ppmlhdfe command to run a gravity equation, with importer-sector and exporter-sector fixed effect. However, the lgdp_o and lgdp_d are not shown in the regression results. I would like to know if lgdp_o and lgdp_d are included into the running of the regression? What is the reason for them not being displayed?
    Code:
    ppmlhdfe flow ldist lgdp_o lgdp_d, noconstant absorb(imp#sector exp#sector)
    Another question is that although I specified noconstant, the final table still shows constants. Why is this the case? Does it affect my coefficients?
    Thank you in advance for your help.

  • #2
    The gdp pariables are probably collinear with the fixed effects; it does not make much sense to specify noconstant if you have fixed effects.

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    • #3
      Originally posted by Joao Santos Silva View Post
      The gdp pariables are probably collinear with the fixed effects; it does not make much sense to specify noconstant if you have fixed effects.
      Dear Professor Joao Santos Silva,
      Thank you for your explanation!

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