Hello everyone, I am a PhD student from strategy area. I encountered a problem in model choice.
My dependent variable is "status". It is Bonacich’s (1987) power centrality, which accounts for the status of the affiliations in addition to connections. Y is in [0,1], at each endpoint, there would be a number of Zero and one. When Y equals to 0, that means the focal firm doesn't have affiliation within the time window. In fact, the reason why the Y is in [0,1] is the Bonacich’s (1987) power centrality is normalized. for example, if the original value is a, it would be normalized using the formula: (a- min)/(max-min). The max and min means the max and min in this year group.
My data structure is the panel data. in this case, if I intend to consider within difference and hence control the firm-fixed effect, could I use xtgee y x i.year, fam(bin) link(logit) corr(uns) vce(robust)? I am not sure whether fractional logit would be more suitable than xttobit. Anyone could give me some ideas about this.
P.s, I did run xtgee and the error hint is "convergence not achieved". Moreover, in year 2013, if the Y won't equal to 0. it would be omitted.(I am not sure whether the omission is caused by the endpoint.)
Thanks very much!
Best,
Christine
My dependent variable is "status". It is Bonacich’s (1987) power centrality, which accounts for the status of the affiliations in addition to connections. Y is in [0,1], at each endpoint, there would be a number of Zero and one. When Y equals to 0, that means the focal firm doesn't have affiliation within the time window. In fact, the reason why the Y is in [0,1] is the Bonacich’s (1987) power centrality is normalized. for example, if the original value is a, it would be normalized using the formula: (a- min)/(max-min). The max and min means the max and min in this year group.
My data structure is the panel data. in this case, if I intend to consider within difference and hence control the firm-fixed effect, could I use xtgee y x i.year, fam(bin) link(logit) corr(uns) vce(robust)? I am not sure whether fractional logit would be more suitable than xttobit. Anyone could give me some ideas about this.
P.s, I did run xtgee and the error hint is "convergence not achieved". Moreover, in year 2013, if the Y won't equal to 0. it would be omitted.(I am not sure whether the omission is caused by the endpoint.)
Thanks very much!
Best,
Christine
