The purpose of the time dummies is to take into account effects that may
influence all cases in a given year to the same amount. If you think
they are likely to exist, then it would be wise to put them in. This can
help to eliminate a possible source of spuriousness due to common trends
in observed variables. David Greenberg, Sociology Department, New York
University
----- Original Message -----
From: Seok-Woo Kwon <[email protected]>
Date: Wednesday, July 13, 2005 4:39 pm
Subject: st: time dummy in random-effects model
> Dear Statalist,
>
> In a running random-effects model for panel data, I have yearly
> observationsand add a time dummy for each year. However, I noticed
> that some people do
> not put in the time dummy at all in the model. Is this justified?
>
> Thanks.
>
> Seok-Woo
>
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