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  • How to run individual fixed effects model in stata?

    Hello, everyone! What code should I use if I want to run the individual fixed effects?
    Click image for larger version

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    uj represents the value of the intercept term of the j countries, Ɛit is the residual term, Dj is the virtual variable.
    Last edited by MARY MA; 19 Jun 2023, 08:17.

  • #2
    Mary:
    see -xtreg,fe-.
    Kind regards,
    Carlo
    (Stata 19.0)

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    • #3
      Originally posted by Carlo Lazzaro View Post
      Mary:
      see -xtreg,fe-.
      Thank you so much for the reply! I used the simplest xtreg[].fe However, I am still confused about the part of the virtual variable and how to include this individual country effect in the model

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      • #4
        Mary:
        the country effect is already accounted for when you -xtset- your data as follows:
        Code:
        xtset panelid timevar
        as -panelid- is mandatory in -xtset-.
        You are also recommended to include -i.timevar- as a categorical predictor in -xtreg,fe-.
        Kind regards,
        Carlo
        (Stata 19.0)

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