st: re: fixed effects model

[Christopher F Baum <baum@bc.edu>]

> Dear Listers
>
>      Can i run the following panel regression with fixed effect ?
>
>      y(i,t)=constant+ w(i)' * alpha + x(i,t)'*beta+u(i,t)
>
>
>      where w(i) is a vector of individaul specific but time invariant
> variables
>      x(i,t) is individual & time variant
>      u(i,t) is the residual term
No; you cannot estimate a unit-specific constant term in a model that 
already has one. Each individual's constant term in the equation above is 
uniquely identified by W alpha. Just use pooled OLS (the standard regress 
command).

Kit

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