Background information:
- i've panel dataset consisting of the following variables: country, year, continent, gini, naturaldisasters.
- it includes 190 countries
- it includes years 1991-2017
- im investigating the effect of naturaldisasters on gini.
- i need to perform Fixed Effects
After not finding any significant results by performing the following command: xtreg gini naturaldisastrs i.year, fe vce (cluster country), my supervisor suggested to include continents*year effects and see whether something changes. However i'm not sure which of the following two commands i should use.
(1) xtreg gini naturaldisasters i.year i.continent, fe vce (cluster country)
or
(2) reg gini naturaldisasters i.year i.continent, vce (cluster country)
I think that by using -xt- commands, with the -fe- option, stata will automatically include the country fixed effects. However, my purpose is to perform fixed effects with continent fixed effects and year fixed effects. So i'm wondering if command (1) is the right one to use.
For the (2) command i'm not sure if i am actually performing a fixed effect estimation (which i have to do according to my supervisor).
I hope i've provided enough information. I'm looking forward for your help!
Thanks in Advance,
Chris de Vries
- i've panel dataset consisting of the following variables: country, year, continent, gini, naturaldisasters.
- it includes 190 countries
- it includes years 1991-2017
- im investigating the effect of naturaldisasters on gini.
- i need to perform Fixed Effects
After not finding any significant results by performing the following command: xtreg gini naturaldisastrs i.year, fe vce (cluster country), my supervisor suggested to include continents*year effects and see whether something changes. However i'm not sure which of the following two commands i should use.
(1) xtreg gini naturaldisasters i.year i.continent, fe vce (cluster country)
or
(2) reg gini naturaldisasters i.year i.continent, vce (cluster country)
I think that by using -xt- commands, with the -fe- option, stata will automatically include the country fixed effects. However, my purpose is to perform fixed effects with continent fixed effects and year fixed effects. So i'm wondering if command (1) is the right one to use.
For the (2) command i'm not sure if i am actually performing a fixed effect estimation (which i have to do according to my supervisor).
I hope i've provided enough information. I'm looking forward for your help!
Thanks in Advance,
Chris de Vries
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