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Re: st:about the fixed-effects model
From
Maarten buis <[email protected]>
To
[email protected]
Subject
Re: st:about the fixed-effects model
Date
Tue, 31 Aug 2010 08:56:46 +0000 (GMT)
--- On Tue, 31/8/10, Jing Zhou wrote:
> My dataset comprises firms observed over time. the time-
> invariant variable is computed at the province level. Can
> I use the FE model to estimate this time-invariant
> variable?
That suggests to me that there are firms that changed
province. A variable may be constant within a province, but
when the firm changes province, that variable is no longer
time constant from the perspective of the firm. The latter
is what matters for fixed effects regression. If this change
of province is real, then that is the solution of your
problem.
Hope this helps,
Maarten
--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany
http://www.maartenbuis.nl
--------------------------
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