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st: RE: Regression with Year Dummy Variables
From
"Venkiteshwaran, Vinod" <[email protected]>
To
"[email protected]" <[email protected]>
Subject
st: RE: Regression with Year Dummy Variables
Date
Tue, 23 Aug 2011 17:30:44 +0000
Thank you.
The variable that is collinear with the year dummies is actually variable t= hat has constant values in each year (it is different in each year but the = same value for each of the years) and hence is perfectly linearly predicted= by the year dummies. What is the implication when the dropped dummies are = at either end of the sample, that is first and last year?
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