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st: RE : st: Sum of fixed effect restricted to be zero


From   <[email protected]>
To   <[email protected]>
Subject   st: RE : st: Sum of fixed effect restricted to be zero
Date   Mon, 22 Nov 2010 14:01:09 -0000

Just!
Thanks for the quick answer.
Xavier

Xavier Vollenweider
PhD candidate & Walsh fellow
London School of Economics



-------- Message d'origine--------
De: [email protected] de la part de Maarten buis
Date: lun. 22/11/2010 13:20
À: [email protected]
Objet : Re: st: Sum of fixed effect restricted to be zero
 
--- On Mon, 22/11/10, [email protected] wrote:
> I would like to apply the model of Ethan Ligon and Laura
> Schechter (The Economic Journal, March 2003) to estimate the
> vulnerability index on a panel data of farmers.
> 
> I need to estimate a fixed effect model where the sum of
> the individual effects sum to zero. 
> 
> y[it]= a[i] + t[t]+ b[t]X[it] + u[it]
> 
> such that the sum of a[i]=0
> 
> Do you know how I could do this?

I think that is what -xtreg- does, since it reports a constant
that is representative for the average group.

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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