Hello All,
I have 40 years of firm-industry-level panel data on frequency of food safety audits per firm-year, number of fines for non-compliance, the industry codes, year, and firm characteristics (size, assets, sales, other fianncials).
I want to create an industry-year measure of enforcement intensity that reflects audit frequency and fine severity. I’m considering using weighted fine count index (sum of fines in dollar value, normalized by industry size) or fixed-effects panel regression (industry & year FE, then use fitted values as adjusted intensity measure).
I would like to ask your advice on which approach is preferable, or if there is a better methodology.
Thank you in advance!
Best regards,
Nick
I have 40 years of firm-industry-level panel data on frequency of food safety audits per firm-year, number of fines for non-compliance, the industry codes, year, and firm characteristics (size, assets, sales, other fianncials).
I want to create an industry-year measure of enforcement intensity that reflects audit frequency and fine severity. I’m considering using weighted fine count index (sum of fines in dollar value, normalized by industry size) or fixed-effects panel regression (industry & year FE, then use fitted values as adjusted intensity measure).
I would like to ask your advice on which approach is preferable, or if there is a better methodology.
Thank you in advance!
Best regards,
Nick
