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From |
valentina p <[email protected]> |

To |
statalist statalist <[email protected]> |

Subject |
st: one way/two way fixed effects |

Date |
Tue, 4 Dec 2007 23:46:57 +0100 |

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 many thanks to everyone who could help me val _________________________________________________________________ Scarica GRATIS le emoticon della tua squadra del cuore e il calendario di serie A! http://www.emoticons-livemessenger.com/pages/msnitcalcio/index.htm * * 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/

**Follow-Ups**:**Re: st: one way/two way fixed effects***From:*"Austin Nichols" <[email protected]>

**Re: st: one way/two way fixed effects***From:*David Greenberg <[email protected]>

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