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st: Dyadic fixed effects and areg, absorb

From   emanuele mazzini <[email protected]>
To   [email protected]
Subject   st: Dyadic fixed effects and areg, absorb
Date   Fri, 15 Apr 2011 16:31:32 +0200

Dear all Stata users,
I am trying to work out a regression with an unbalanced bilateral
panel dataset in which I need to include both dyadic fixed effects and
year fixed effects. Since my dataset is very huge (it includes more
than 600,000 observations) and I cannot generate a dummy for the
variable dyads (which is the unique dyads identifier), I thought that
I can accomplish this by using the following command:

areg...., absorb(dyads)

by including only the dummies that refer to the years to take into
account the year fixed effects, while absorb(dyads) is supposed to
take into account the dyadic fixed effects.

I am not looking really for an help, but more for an advice: what do
you think about this solution to my problem (i.e. to the impossibility
to generate more than 15,000 dummies)? Do you think this may work?

Thanks to all of you in advance for your time and consideration,

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