Country-specific linear trends

[Olivia Emma]

Hi

I am trying to estimate the equation using reghdfe.

I have to add the country-specific linear trends. how I can generate these and add to the equations please

Thanks

[Olivia Emma]

Hello

is this the right approach please


* Example data
use your_data

* Create dummy variables for each country
tabulate country, generate(country_dummies)

* Create time trend variable
gen time_trend = year - 2000

* Create country-specific time trend variables
foreach c of varlist country_dummies* {
foreach y of varlist time_trend {
gen `c'_`y' = `c'*`y'
}
}

* Estimate fixed-effects regression with country-specific time trends using reghdfe
reghdfe dependent_var `c'_time_trend* independent_vars, absorb(country) vce(cluster id)

[Clyde Schechter]

Well, yes, you could do it that way, but it's way more complicated than you need. All you need to do is:

reghdfe dependent_var i.country#c.year independent_vars, absorb(country) vce(cluster id)

See -help fvvarlist-.

[Olivia Emma]

Well, yes, you could do it that way, but it's way more complicated than you need. All you need to do is:

reghdfe dependent_var i.country#c.year independent_vars, absorb(country) vce(cluster id)

See -help fvvarlist-.

Thanks


I have to include the linear time trends for each grid point in the data. how I can do this please

[Clyde Schechter]

What do you mean by "grid point?"

And I think it is (past) time for you to show example data here.