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Re: st: RE: Areg, absorb
From
Christopher Baum <[email protected]>
To
"[email protected]" <[email protected]>
Subject
Re: st: RE: Areg, absorb
Date
Tue, 12 Apr 2011 07:02:41 -0400
<>
On Apr 12, 2011, at 2:33 AM, Jan wrote:
>
> Would it not be possible for you to first generate group id's based on country1 country2 and year, and then use -areg- to control for each group? I think that would capture the desired effects.
>
> In that case it would be something like:
>
> Egen id=group(country1 country2 year)
> Areg ..., abs(id)
That will obviously fail. Imagine a standard panel of N countries and T years. Your group id will have N*T values, exactly equal to the size of the dataset. Adding another dimension of countries doesn't change that. The point of doing two-way or three-way fixed effects is that they independently identify the unit (or units) and the time period, without interactions.
You probably should use this trick to identify country-pairs, though. Do an egen group to create an index of each distinct country-pair, tsset the data by that variable and year, run xtreg, fe with a set of year dummies. Downstream, just use the drop() or keep() options in a program like Ben Jann's estout (on SSC) to retain the coefficients you want to see in the LaTeX table (or whatever).
Kit
Kit Baum | Boston College Economics & DIW Berlin | http://ideas.repec.org/e/pba1.html
An Introduction to Stata Programming | http://www.stata-press.com/books/isp.html
An Introduction to Modern Econometrics Using Stata | http://www.stata-press.com/books/imeus.html
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