Bookmark and Share

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


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

RE: st: xtivreg2 with factor variables


From   David Torres <[email protected]>
To   "[email protected]" <[email protected]>
Subject   RE: st: xtivreg2 with factor variables
Date   Mon, 30 Dec 2013 17:34:40 -0500

Anat,

Try the xi: operator before the command.

xi: xtivreg2 log_ss dem gini gdp i.year, fe cluster(country_code year) bw(1)

That will automatically break year out into dummy variables.

I'm surprised, though, that you're using -xtivreg2- in the absence of any instruments.  I would argue that if you want to treat year as continuous, you should rethink the model.  You might also prefer using -xtivreg- over -xtivreg2-.  For instance, say you need to instrument for one of the variables in your model, say gdp.  Let's give the instrument a generic name, say rainfall.  You would do something like this:

xtivreg log_ss dem gini c.year (gdp = rainfall), re vce(cluster country_code)

and interactions are also possible:

xtivreg log_ss dem gini gini#c.year (gdp = rainfall), re vce(cluster country_code)

The last model here assumes gini is a time-invariant predictor for which you want to know its relationship to time.

Cheers,

--

David Diego Torres, PhD
NSF SBE Postdoctoral Research Fellow
Houston Education Research Consortium
Rice University
6100 Main Street, MS-28
Houston, TX 77005
Phone: 713-348-2984
Email: ddtorres at rice dot edu


----------------------------------------
> Date: Tue, 31 Dec 2013 00:15:11 +0200
> Subject: st: xtivreg2 with factor variables
> From: [email protected]
> To: [email protected]
>
> Dear all,
> I have an unbalanced panel of macroeconomic data on 35 countries over 17 years.
> My analysis shows that time effects are jointly significant, as well
> as indicated first order autocorrelation.
> I
> therefore ran the following command:
> . xtivreg2 log_ss dem gini gdp i.year, fe cluster(country_code year) bw(1)
>
> I got the following error: factor variables not allowed
> Shell I specify each year dummy (excl. one) or is there a different
> problem here?
> Any advise will be appreciated!
> Anat
>
>
> --
> Anat Tchetchik, PhD
> Department of Business Administration
> Guilford Glazer Faculty of Business and Management
> Ben-Gurion University of the Negev
> P.O.Box: 653
> Beer-Sheva, Israel, 84105
>
> E-mail: [email protected]
> Phone 972-(0)8-6479735
> Fax: 972-(0)8-6472920
> *
> * For searches and help try:
> * http://www.stata.com/help.cgi?search
> * http://www.stata.com/support/faqs/resources/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/faqs/resources/statalist-faq/
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2018 StataCorp LLC   |   Terms of use   |   Privacy   |   Contact us   |   Site index