Hello,
I'm running a panel regression with 51 states from 1995 to 2000.
I need to include a dummy variable set equal to one if a state meets a qualification.
For example, my data looks like below...
year dependent variable state dummy(independent)
1995 2.3244 1 1
1996 3.4455 1 1
1997 2.1100 1 1
1998 1.4455 1 1
1999 2.7788 1 1
2000 3.2255 1 1
1995 2.4455 2 0
1996 1.5567 2 0
1997 4.5568 2 0
1998 2.567 2 0
1999 3.5566 2 0
2000 4.5566 2 0
state 1 = alabama, state 2= alaska, ...
Value of dummy variable holds for the entire period. So it's either 1 for the entire period or 0 for the entire period.
I ran fixed effects regression (xtreg, fe) but stata keeps dropping the dummy variable. What can I do now?
Thank you.
J.C.
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