Andrea,
You can interpret the omitted country's fixed effect as being the constant.
Concerning the within-estimator fixed effect, you can estimate a
first-difference equation including your country dummies.
Y(t) - Y(t+1) = b[X(t) - X(t+1)] + b'Country(1) + ....e
Rafa
----- Original Message -----
From: "Andrea Molinari" <[email protected]>
To: <[email protected]>
Sent: Thursday, June 03, 2004 9:03 AM
Subject: st: Re: RE: xi question
> Nick,
> Thanks for that. However, adding 420 dummies to my model would only work
> when estimating a pooled OLS, but not a within estimator (since the fixed
> effects model would drop anything that is invariant over time).
> Any hints for doing that in fixed effects?
> Thanks!
> Andrea
>
> ----- Original Message -----
> From: "Nick Cox" <[email protected]>
> To: <[email protected]>
> Sent: Wednesday, June 02, 2004 6:58 PM
> Subject: st: RE: xi question
>
>
> > generate the dummies yourself with -tabulate-?
> >
> > Nick
> > [email protected]
> >
> > > -----Original Message-----
> > > From: [email protected]
> > > [mailto:[email protected]]On Behalf Of Andrea
> > > Molinari
> > > Sent: 02 June 2004 18:58
> > > To: [email protected]
> > > Subject: st: xi question
> > >
> > >
> > > Dear Statalisters,
> > > I am estimating an equation in panel which takes dummies for
> > > 420 individuals
> > > and 22 years.
> > > I need to have the 420 fixed effects to use them in a second
> > > stage, but I
> > > cannot find the way of dropping the constant to get 420 (and
> > > not 419) fixed
> > > effects.
> > > I tried putting "nocons" in as many places as possible (my sentence is
> > > xi: xtreg depvar regressors i.indiv t.time), but xi still
> > > drops one of my
> > > fixed effects (calculated as individual dummies)!
> > > Has anyone got any suggestion on how to do this using xi or any other
> > > command? (I do need the fixed effects estimated, for I have
> > > to use their
> > > sampling variance, or standard error, too).
> > > Thanks very much!
> > > Andrea
> > >
> > > Andrea Molinari
> > > DPhil candidate in Economics
> > > University of Sussex
> > > Department of Economics
> > > Arts Building E - office 517
> > > Falmer, Brighton BN1 9SN
> > > United Kingdom
> > >
> > > Tel: +44 (0) 1273 - 873538
> > > Fax: +44 (0) 1273 673563
> > >
> > >
> > > *
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> > >
> >
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> >
>
>
> *
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>
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