Fixed effects using reghdfe after xtset

[Enrique Alameda]

Dear all,

I have read the documentation of the reghdfe command, but would like to confirm whether when I declare a panel using xtset id1, where id1 = group(id t), the id and t fixed effects are automatically considered when running the reghdfe command, without having to specify them again in the absorb portion of the command (i.e., absorb(id t)).

Note, that in this case t refers to the year of marriage and not to the year at which the observations are taken

Thank you in advance,

[Andrew Musau]

reghdfe is from SSC (FAQ Advice #12). xtset functions only with official Stata panel estimators that have the -xt- prefix. Therefore, xtsetting the data has no effect on reghdfe estimation.