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From |
Scott Merryman <scott.merryman@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: constant in -xtreg (yes, again!) |

Date |
Wed, 4 Dec 2013 12:29:08 -0600 |

Yes. Here is an attempt: Regression with dummies: y_it = a_i + x_it*b + e a_i = y_it - x_it*b + e Calculate the average Sum_t Sum_i a_i/(T_i*n) = Sum_t Sum_i y_it/(T_i*n) - Sum_t Sum_i x_it/(T_i*n) + Sum_t Sum_i e/(T_i*n) T_i* a_i/(T_i*n) = y2bar - x2bar xtreg,fe: (y_it - ybar_i - y2bar) = a + (x_it - xbar_i + x2bar)*b + e a = (y_it - ybar_i - y2bar)- (x_it - xbar_i + x2bar)*b - e Sum_t Sum_i a = Sum_t Sum_i [(y_it - ybar_i - y2bar)- (x_it - xbar_i + x2bar)*b - e] Since Sum_t Sum_i y_it = y2bar Sum_t Sum_i ybar_i = y2bar Simplifies a*T*n = y2bar*T*n - x2bar*T*n a = y2bar - x2bar = Sum_t Sum_i a_i/(T_i*n) On Wed, Dec 4, 2013 at 1:07 AM, jean-luc morin-chesnel <jeanluc.morinchesnel@gmail.com> wrote: > Oh Scott thank you very much! > Of course, it is the weighted average! ;-) > > So I am right to say that the proof that the constant is equal to the > average fixed effects is not shown in the faq?! > > Many thanks again > * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/faqs/resources/statalist-faq/ * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: constant in -xtreg (yes, again!)***From:*jean-luc morin-chesnel <jeanluc.morinchesnel@gmail.com>

**References**:**st: constant in -xtreg (yes, again!)***From:*jean-luc morin-chesnel <jeanluc.morinchesnel@gmail.com>

**Re: st: constant in -xtreg (yes, again!)***From:*Scott Merryman <scott.merryman@gmail.com>

**Re: st: constant in -xtreg (yes, again!)***From:*jean-luc morin-chesnel <jeanluc.morinchesnel@gmail.com>

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