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st: Fixed Effects Model and Year Dummies


From   Drew Reed <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: Fixed Effects Model and Year Dummies
Date   Fri, 13 Sep 2013 12:11:54 +0200

Hi,

I'm running a fixed effects regression on panel data. I am aware of
the fact that fixed effects models control for time invariant
characteristics, like that of country effects, etc. I am wondering,
however, if I should include year dummies in my regression. Are these
dummies time-invariant? Would Stata control for these in using the
xtreg, fe command and are there any tests that can be performed to see
if they should be included?

Thanks,

Drew
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