I am looking to estimate the impact of the presence of a fiscal council on a country's real growth forecasting error. I have run the following fixed effects model:
Code:
xtreg rgfe L.fc L.fri L.rgog L.debt i.pubdate, fe robust
Where rgfe is the real growth forecasting error and L.fc is a lag of a fiscal council dummy variable equal to 1 in the presence of a fiscal council and 0 otherwise. I am aware that time-invariant explanatory variables are removed because of the transformation involved in fixed effects estimation. For some countries, the fiscal council dummy is time-invariant, i.e. it is always equal to either 0 or 1 for all time periods in my sample. For others, the fiscal council varies over time, e.g. so that for the UK, FC=1 in all time periods after 2009 but FC=0 before.

Is it appropriate to use fixed effects estimation for this model if I am primarily concerned with the fiscal council as an explanatory variable?