There is also a FAQ on this:
http://www.stata.com/support/faqs/stat/xtreg2.html
regards
uli
[email protected] wrote:
> The constant appears because the way Stata does the within transformation
> is not just
>
> Yit - YBARi,
>
> where YBARi is the average of Yt in group i,
>
> but Yit - YBARi + YBARit,
>
> where YBARit is the average Y over time and across groups. Hence, a
> constant will show up again.
>
> Hope this helps.
>
> Martin
>
>
>
>
>
> Hello,
>
> the stata command
>
> xtreg ... , fe i(...);
>
> uses a within transformation, which means that all the fe-dummy variables
> disappear and also a constant. In the output of this function, stata still
> rapports a constant coefficient. How is this calculated?
>
>
> Randy Brenkers
>
>
>
>
> *
> * For searches and help try:
> * http://www.stata.com/support/faqs/res/findit.html
> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
--
[email protected]
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
