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st: Fixed effects - DD question


From   "Benjamin Allaire" <[email protected]>
To   [email protected]
Subject   st: Fixed effects - DD question
Date   Thu, 28 Jun 2007 14:13:17 -0400

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Hi there -
I know this is a trivial question, but I'm having trouble figuring out the
way to fix it - I received a comment on a paper of mine that I should use
individual level fixed effects, but I'm using the DD technique. I have grou=
p
A that is treated and a post treatment time dummy.

xtreg outcome d_groupA d_time_posttreat d_groupA_time_posttreat, i(personid=
)
fe

And stata dropped the d_groupA variable - my hunch it did that because in
the FE model, you can't have non-time varying characteristics - but I'm not
100% sure.  How would I implement this while adhering to the comment I
received on my paper?  Is there more data I need?  Am I just specifying
something in stata improperly?

Thanks,
Ben

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