# Re: st: fixed-effects with dummy variables

 From David Greenberg <[email protected]> To [email protected] Subject Re: st: fixed-effects with dummy variables Date Fri, 02 May 2008 16:57:06 -0400

```A dummy variable in your situation has the same interpretation as in other regression contexts. It raises or lowers the intercept by the amount of its coefficient when the dummy variable takes on the value 1. When its value is zero it has no effect. David Greenberg, Sociology  Department, New York University

----- Original Message -----
From: [email protected]
Date: Thursday, May 1, 2008 5:23 pm
Subject: st: fixed-effects with dummy variables
To: [email protected]

> Hello,
>
> I have included dummy variables in a county-level fixed-effects regression.
>
> Stata will estimate the coefficients for these dummy variables because
>
> they vary across time (as well as counties) in the sample.
>
> Given the transformation of data in a fixed-effects regression, I am
>
> uncertain as to how I should interpret the coefficients for these
> dummy variables.
>
>
> A simplified version of the county-level fixed effects regression I am
>
> running in stata is reflected by the following stata command:
>
> xtreg  y d1 d2 d3  X t, fe
>
> where:
>
> y is a continuous variable
> d1..d3 represent time varying dummy variables with the omitted dummy
>
> being (d4).
> X represents a vector of time varying continuous explanatory variables.
> t represents a vector of time dummy variables.
>
>
> Thanks,
>
> Food, Agricultural and Resource Economics
> University of Guelph
>
> P.S.  I posted a version of this question earlier in the week
> (received no responses). I believe, however, this current email better
>
> reflects my question and the range of advice that would be welcomed.
>
>
>
>
>
> *
> *   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/

*
*   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/
```

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