Hi all,
I am doing a fixed effects model in stata in order to find out what factors affect house prices. I am in doubt whether I type in the right command to stata AND how to interpret the results so I hope some of you can help me.
WHAT I TYPE IN:
1) Make stata understand i have quarterly data:
gen Date = quarterly(TIME, "YQ")
format Date %tq
2) Running the fixed effect regression
xtset ID Date
xtreg RealHousePrices RealDisposableIncome Unemploymentrate InterestRate Constructioncosts POpulation Date, fe
WHAT I GET AS RESULT:
Array
With respect to the result, is it then right to say that: As unemployment rate increases by 1 % (unemployment rate is measured in percentages), real house prices decrease by 108 %. Of course this does not sound right, but what am I doing wrong?
Any help is very much appreciated. Thank you very much in advance.
Best regards
William
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