Notice: On April 23, 2014, Statalist moved from an email list to a forum, based at statalist.org.

# Re: st: huge amount of j-th related individual dummies

 From John Antonakis To statalist@hsphsun2.harvard.edu Subject Re: st: huge amount of j-th related individual dummies Date Mon, 19 Dec 2011 19:06:42 +0100

```Hi:

```
You can easily solve your problem of modeling the fixed-effects by using procedure not known to many--that is, including the cluster level mean of the panel-varying variable gives the same estimates as using dummy variables. For a technical explanation see:
```
```
Mundlak, Y. (1978). Pooling of Time-Series and Cross-Section Data. Econometrica, 46(1), 69-85.
```
For a basic intuitive explanation see:

```
Antonakis, J., Bendahan, S., Jacquart, P., & Lalive, R. (2010). On making causal claims: A review and recommendations. The Leadership Quarterly, 21(6), 1086-1120.
```
To see specific examples in action with data, see:

```
Rabe-Hesketh, S., & Skrondal, A. (2008). Multilevel and Longitudinal Modeling Using Stata. College Station, TX: Stata Press.
```
Hope this helps.

John.

__________________________________________

Prof. John Antonakis
Department of Organizational Behavior
University of Lausanne
Internef #618
CH-1015 Lausanne-Dorigny
Switzerland
Tel ++41 (0)21 692-3438
Fax ++41 (0)21 692-3305
http://www.hec.unil.ch/people/jantonakis
Associate Editor
__________________________________________

On 19.12.2011 16:46, massimiliano stacchini wrote:
```
```Dear users,
I need to
run in STATA the following model   y(i , j , t)  = X(i , j , t ) + D(i) + F(j) + H(t)D(i) F(j), H(t)  represent a set of fixed effects dummies respectively for the i-th lender , the j-th borrower and the it-th period.
The problem is that I have 60,000
borrowers (60,000 j-th related dummies).

The command:

xi: regress rate  i.borrower ....i.time i.lender

does not support a so
huge amount of related-to-borrowers –dummies.

Could you suggest me how can I deal with this problem ?
```
thanks
```*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/
```
```*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/
```