Dear Statalist, I am trying to run a pannel regression using the xtreg command with fixed effects (after performing a hausman test which proved to be significant). My command looks as follows:
Note that xtset for each pannel id and year has been set.
When performing this, i.is_financial gets ommited. The value does not change over firm or year, as it indicates whether the firm is part of a financial industry or not. How can I solve this issue? Are there any workarounds? Is another regression model more suitable, although the hausman test showed this one to be the best?
Thank you!
Code:
xtreg erm_index_w L1.c.ICSR##L1.i.cso_presence c.emp_log c.leverage_w i.bigfour i.is_financial i.crisis_dummy, fe vce(robust)
When performing this, i.is_financial gets ommited. The value does not change over firm or year, as it indicates whether the firm is part of a financial industry or not. How can I solve this issue? Are there any workarounds? Is another regression model more suitable, although the hausman test showed this one to be the best?
Thank you!
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