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st: About putting in fixed effect dummies

From   Tak-wai Chau <>
Subject   st: About putting in fixed effect dummies
Date   Mon, 14 Nov 2005 12:59:46 -0500

Hi, statalist subscribers,

I have another question about how to control for "fixed effect" more efficiently.

For example, I have a dataset of the level of state, year (of survey) and age. I would like to control for state specific effect, year specific effect and age specific effect, but not interaction of them. One way to do it is to put in state dummies, year dummies and age dummies. However, sometimes when the dataset is large, such strategy will make the dataset much much bigger and difficult to handle. Moreover, their coefficients are not always of our interest. Then can any expert here suggest a more clever way of doing such a job?

Thank you very much in advance!

Tak Wai

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