Hi,
I am trying to run a model of the exporting decision of some firms on some RHS variables. The LHS variable is a dummy variable taking values of 0 or 1 depending on whether a firm is in an export market in a certain year or not. The data is a 16 year unbalanced panel of 320 firms.
My question relates to running this on either of the above binary choice models:
* For LPM, i want to include firm and year fixed effects, in that case what is the right way:
xtreg Y X1 X2 X3 year dummies, fe
or
regress Y X1 X2 X3 year dummies firmdummy1-firmdummy2
I find that standard errors are different if i do the above two, though the t-stat and the point estimates are much the same.
* For Probit, can anyone suggest how to include firm fixed effects if at all without including all the firm dummies in the above regressions. Is there any short cut?
* For logit, i am using the clogit command thus:
clogit Y X1 X2 X3 time dummies, group(firmid)
- Is this correct to incorporate firm and year fixed effects for a panel logit.
Thanks, Chirantan.
Doctoral Student, Heinz School
Carnegie Mellon, PA.
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