> Dear all,
> I have a panel of 7 countries, identified by the variable id. When I run the following regression
> xi: reg y x1 x2 i.year i.id
> as expected, Stata omits the first dummy of both the id and year sets of dummies.
> The strange thing is that it also drops another dummy variable of both the mentioned sets of dummies, but it uses in the estimation the corresponding country and year.
> Could you please help me in understanding the reason behind this dropping?
> thank you in advance
> Federica
> Department of Economics anad Statistics
> University of Calabria
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*
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* http://www.ats.ucla.edu/stat/stata/
