Dear Statalisters,
I am currently working on a project with cross-country data. In order to examine my research question, I initially intented to use a regular OLS regression. However, since the number of observations by country vary substantially (e.g. U.S.: over 10,000 obs. and Mexico less than 100 obs.), I think that the weighted least squares approach would be more appropriate. I already familiarized myself with some possible Stata commands (wls0; regwls; aweights). In order to ensure that each country receives equal weight in the estimation, I want to conduct WLS, where the weight of each observation is the inverse of the number of observations in each country.
However, I am currently struggling with finding a way to do this with the given Stata commands. Has anyone conducted a similar analysis and can help me? Or does this kind of analysis makes even sense in your opinion?
Comments or suggestions are highly appreciated :-)
TM
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