Hello all,
I am a beginner in stata and using it for my bachelor thesis. Therefore my questions are rather basic. I hope I will still find help in this forum.
I use a regression with two fixed effects (year and company) and my data is distributed over time and firms. Now I was asked to add further independent variables and loss and big were suggested. Both are binary and indicate whether the respective firm is big (loss making). loss2 and big2 are loss(big)*timedifference:
reghdfe ln_deviation ln_timedifference loss loss2 big big2, absorb (cusip yearforecast)
Stata is omitting those variables due to collinearity. I have found the explanation online that this might be the case as the deviation of those variables over time are rather limited. Does this explanation make sense? And how can I adjust for this (exclude the variable / change the nature of this variable / do nothing)?
Furthermore, I use the two natural logarithms to make the interpretation easier. This reduces my standard error and makes some of my analysis insignificant. Is there a rule of thumb to test whether the natural logarithm fits the distribution of my data?
I am very thankful for any kind of help.
Related Posts with Ommited variables fixed effects regression
How to rank the values of all variables to one id in one year for panel data? Many thanks! Code: * Example generated by -dataex-. To install: ssc install dataex clear input float id double y…
U-shaped - Sasabuchi test?Dear Statalisters, I am trying to test for an inversed U-shaped between credit risk index and adju…
Marginsplot: using the original values instead of log values in the x-scaleDear all, I have run a panel probit model and I want to plot marginal effects for different values …
Logistic Regression Model on mortgage portfolioHi all, Currently I am working with a mortgage portfolio on which I would like to perform a logisti…
How to draw ln(odds) against category?Hello everyone, This is my data. Chlordecone level category Total births Preterm births No prete…
Subscribe to:
Post Comments (Atom)
0 Response to Ommited variables fixed effects regression
Post a Comment