Hi everyone!
I am a master student in economics and I am struggling in performing a DiD regression.
My setup is the following:
I am studying the effectiveness of a policy acted by the italian government to fight the inflation (policy was an agreement with large-scale retail distribution to keep prices stucked on certain goods, in force during last trimester of 2023).
I have a Panel data structure where my observational unit is the good. I have downloaded mothly HICP data from eurostat for each good for each eurozone country (to be used as counterfactual).
I will quickly describe the structure of my dataset and the regression I would like to perform.
Dataset structure:
country month good_ID HICP_value dummy_1_if_italy dummy=1_if_Q4-2023 interaction of the 2 dummies good_weight country_weight
The regression I want to perform is:
HICP_value = dummy_Italy + dummy_Q4-23 + dummies_interaction + FE_good + FE_month + FE_country + weights
Which command I should use? from the stata help section I tried to use xtset and xtdidregress commands, but with xtset can't work in my setting because I have of course obs with unique combination of "good x month x country"! but individually each of them is repeated is repeated in the dataset so xtset doesn't work.
I hope I was clear with the explanation, otherwise I am here for further clarifications.
Thanks in advance for your help!
Alberto
I am a master student in economics and I am struggling in performing a DiD regression.
My setup is the following:
I am studying the effectiveness of a policy acted by the italian government to fight the inflation (policy was an agreement with large-scale retail distribution to keep prices stucked on certain goods, in force during last trimester of 2023).
I have a Panel data structure where my observational unit is the good. I have downloaded mothly HICP data from eurostat for each good for each eurozone country (to be used as counterfactual).
I will quickly describe the structure of my dataset and the regression I would like to perform.
Dataset structure:
country month good_ID HICP_value dummy_1_if_italy dummy=1_if_Q4-2023 interaction of the 2 dummies good_weight country_weight
The regression I want to perform is:
HICP_value = dummy_Italy + dummy_Q4-23 + dummies_interaction + FE_good + FE_month + FE_country + weights
Which command I should use? from the stata help section I tried to use xtset and xtdidregress commands, but with xtset can't work in my setting because I have of course obs with unique combination of "good x month x country"! but individually each of them is repeated is repeated in the dataset so xtset doesn't work.
I hope I was clear with the explanation, otherwise I am here for further clarifications.
Thanks in advance for your help!
Alberto
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