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st: specifying the nested design for xtmelogit


From   Dana Shills <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: specifying the nested design for xtmelogit
Date   Wed, 6 Nov 2013 12:38:24 -0500

My data is of the following format - I have multiple years of observations on firms in different industries. The industries are defined at a very dis-aggregated level so each firm is not associated with just one industry but with multiple industries and this classification doesn't change over time. For instance: Firm A is associated with 4 different industries and we have three years of data, so there are 12 observations on firm A. My dependent variable, Y, is  0/1 (Did the firm make an announcement in that industry in that year or not). X is a vector of covariates.

I am using the following nested random effects model accounting for the multiple observations per firm and the multiple firms in each industry.

xtmelogit Y X ||industry: ||firm: 

Is this correct given that each firm is not just associated with just one industry?

Thanks

Dana 		 	   		  
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