Re: st: fixed-effects with dummy variables

[bdeaton@uoguelph.ca]

David,

Thanks very much for your reply; it was very helpful.

Brady Deaton


Quoting David Greenberg <dg4@nyu.edu>:

> A dummy variable in your situation has the same interpretation as in  
>  other regression contexts. It raises or lowers the intercept by the  
>  amount of its coefficient when the dummy variable takes on the  
> value  1. When its value is zero it has no effect. David Greenberg,   
> Sociology  Department, New York University
>
> ----- Original Message -----
> From: bdeaton@uoguelph.ca
> Date: Thursday, May 1, 2008 5:23 pm
> Subject: st: fixed-effects with dummy variables
> To: statalist@hsphsun2.harvard.edu
>
>
>
> > Hello,
> >
> > I have included dummy variables in a county-level fixed-effects regression.
> >
> > Stata will estimate the coefficients for these dummy variables because
> >
> > they vary across time (as well as counties) in the sample.
> >
> > Given the transformation of data in a fixed-effects regression, I am
> >
> > uncertain as to how I should interpret the coefficients for these
> > dummy variables.
> >
> > I�d greatly appreciate any thoughts/comments/ or suggested readings.
> >
> > A simplified version of the county-level fixed effects regression I am
> >
> > running in stata is reflected by the following stata command:
> >
> > xtreg  y d1 d2 d3  X t, fe
> >
> > where:
> >
> > y is a continuous variable
> > d1..d3 represent time varying dummy variables with the omitted dummy
> >
> > being (d4).
> > X represents a vector of time varying continuous explanatory variables.
> > t represents a vector of time dummy variables.
> >
> >
> > Thanks,
> >
> > Brady Deaton
> > Food, Agricultural and Resource Economics
> > University of Guelph
> >
> > P.S.  I posted a version of this question earlier in the week
> > (received no responses). I believe, however, this current email better
> >
> > reflects my question and the range of advice that would be welcomed.
> >
> >
> >
> >
> >
> > *
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