Hi Bob,
Thanks for the quick reply.
If I understand you correctly, you are saying I cannot get
a statement on group specific characteristics, e.g.
conditional convergence from panel data?
Or I would need to split my data in two files (say non-oecd
and oecd) and compare the coefficients by hand. Would that
work?
Thanks again.
steffen
> -----Original Message-----
> From: [email protected]
> [mailto:[email protected]] On Behalf Of
> [email protected]
> Sent: Tuesday, August 15, 2006 12:44 AM
> To: [email protected]
> Subject: Re: st: Xtreg is dropping dummy variable for OECD countries.
>
>
> Dear Steffen,
>
> As you are using a fixed-effects model, identification occurs
> on the basis of time-varying characteristics only. Since
> dummies do not change over time, Stata drops them (remember
> that fixed-effects are essentially transforming all variables
> into deviations from their average and that the impact of
> observable characteristics that are fixed such as gender and
> location cannot be estimated).
>
> Hope this helps,
>
> Best,
>
> Bob
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