st: SV: Re: xtreg (Panel fixed effects model): inflation adjustment

[<Per.Stromberg@naturvardsverket.se>]

Hi Kit,
Very much appreciated. I was still struggling to get to terms with the fixed effects model.
Best,
Per Stromberg


________________________________________
Från: owner-statalist@hsphsun2.harvard.edu [owner-statalist@hsphsun2.harvard.edu] för Christopher Baum [kit.baum@bc.edu]
Skickat: den 11 april 2013 14:18
Till: statalist@hsphsun2.harvard.edu
Ämne: st: Re: xtreg (Panel fixed effects model): inflation adjustment

<>
On Apr 11, 2013, at 2:33 AM, Per wrote:

>
> I am using a fixed effects panel data model,
> - -xtreg ksum_vyta ebh1 ebh2 pop_dens_kn arblos_kn ink_kn, fe-
> , on annual data for a ten year period (across 60 cross section observations). The xtreg, fe model automatically uses year dummies.

Time dummies would control for inflation, but what makes you think they will be present in this equation? fixed effects introduces individual
fixed effects, not time effects. If you want time effects, you generally must include something like i.year in the regressor list.

Kit


Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                             An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
  An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html
                                                                                                      http://www.crup.com.cn/Item/111779.aspx


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