. egen g=group(state ind)
. areg y x, absorb(g)
On 1/11/06, Yvonne Capstick <[email protected]> wrote:
Hi,
I'm trying to run a regression of company profit on many potential
determinants (e.g. past advertising, past sales growth). I have a large
dataset of many companies and am doing a pooled regression, pooling all
of
the observations together. I would like to include two dummy variables as
controls: one for the state, and a second for the industry (i.e. state
and
industry year fixed effects).
Is there a simple way to do this without literally creating a separate
dummy
variable for each state and each industry? I know that with a panel
dataset
(i.e. multiple cross sections over time), I can do xtreg y x, i(industry)
fe
if I am only interested in constructing an industry fixed effect. This
syntax instructs Stata to create the dummy variables so I do not have to.
However, if I need more than one fixed effect (industry and state), xtreg
cannot seem to accommodate this. It only lets me put one variable in the
i(
) option. Could anyone suggest an alternative way?
Thanks!
Yvonne
