Hi everybody,

I'm using panel data to examine the effect of immigration on house prices and I am trying to use a fixed effects model. I am including year and local area dummies, however Stata is omitting all of my local area dummies because of collinearity. I am using the command:

xtreg fdlnHP immipop fdlagunemployment fdlagcrime fdlagbenefits fdlagdwpop i.Year i.LA2, fe robust

where fdlnHP is my house price variabel and immipop is my immigration variable.

Is anybody able to please explain why I may be having this problem and offer a solution?

Any help would be hugely appreciated.

Many thanks,

Tom