Hi to everyone,
I have data of 15 regions over 15 years and I am trying to understand which model to use to estimate the impact of immigration on per capita income. Now I have to choose between a one-way and a two-way fixed effects model. For this reason, I have two big "groups of question" (sorry in advance).
1)To control for regions and time I suppose that a two-way fixed effects model can be useful, but I do not know the commands for stata. I have read an example in a manual like:
xtreg lc ly lpl lpm year2-year11, re
dropped year1, which becomes the reference.
Then the results are
coef. P>|z|
ly .7409992 0.000
lpl .1669597 0.026
lpm .666226 0.000
year2 .0464402 0.019
year3 -.0744206 0.036
|
|
year11 -.0460081 0.740
_cons 2.4982631 0.002
whith the respective coefficients. How can I interpret them and the constant term? I refer most of all to the coeffs of year2-year11. In which sense can I interpret them like variations from the year1? I mean...what does this explain? which effects?
and how can I interpret the rule of(in the example let it be) ly, the variable which I am principally studying?
2) Apart from this, if used a one way fixed effect model like xtreg y x1 x2 ... ,fe
would it be necessary to make an analysis of the residuals? If yes, through which commands?
Many thanks to everyone who could help me
val
________________________________
Hi to everyone,
I have data of 15 regions over 15 years and I am trying to understand which model to use to estimate the impact of immigration on per capita income. To control for regions and time I suppose a two-way fixed effects model can be useful, but I do not know the commands for stata. I have read an example on a manual like:
xtreg lc migr y pl pm year2-year11, re
dropped year1, which becomes the reference.
Then the results are
coef. P>|z|
ly .7409992 0.000
lpl .1669597 0.026
lpm .666226 0.000
year2 .0464402 0.019
year3 -.0744206 0.036
|
|
year11 -.0460081 0.740
_cons 2.4982631 0.002
whith the respective coefficients. How can I interpret them and the constant term?
how can I interpret is the rule of MIGR (in the example let it be ly), the variable which I am principally studying?
Apart from this, if used a one way fixed effect model like xtreg y x1 x2 ... ,fe
would it be necessary to make an analysis of the residuals? If yes, through which commands?
Thanks to everyone who could help me
I'm really sorry for the dumm questions
val
________________________________
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