Marco Buur wrote:
> I am running xtreg, re model with dummy (year) variables
>
> xtreg a b c y1-y8, re cluster(Country)
>
> 2 dummy variables y2 and y8 are dropped due to collinearity. Is there
> a way to fix this?
An alternative would be to demean your explanatory variables by year
and run -xtreg- with those variables, but without the year dummies.
However, this runs the large risk of purging some of the variation
from your data which the model would seek to explain.
> Can I force Stata to include all dummy variables y1-y8 in xtreg, re?
I don't believe so, certainly not in version 9.2, which is the one I
have. See -help xtreg- in your version to see what it says.
--
Clive Nicholas
[Please DO NOT mail me personally here, but at
<[email protected]>. Please respond to contributions I make in
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"My colleagues in the social sciences talk a great deal about
methodology. I prefer to call it style." -- Freeman J. Dyson.
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