Dear all:
I use dummy variables to control for individual fixed effects. some of the dummy variables are dropped by stata when i run OLS. for example:
......
_Iname_11 | .0325197 .1472331 0.22 0.826 .0485629
_Iname_12 | -.2413537 .0841713 -2.87 0.005 -.1367784
_Iname_13 | (dropped)
_Iname_14 | (dropped)
_Iname_15 | (dropped)
_Iname_16 | (dropped)
_Iname_17 | -.1292328 .1158529 -1.12 0.268 -.1780356
......
it is an unbalanced panel dataset, so i guess this is because these individuals do not have enough observations over time, right?
i am wondering:
1. how does stata deal with these individual and observations? drop them?
2. how does this phenomenon affect the final results (unbiased and consistent, etc.)?
many thanks!
GB
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