Code:
webuse grunfeld, clear gen ind = company > 5 /* xtreg invest mvalue kstock if ind == 0, fe robust xtreg invest mvalue kstock if ind == 1, fe robust */ reghdfe invest i.ind#c.(mvalue kstock), a(company) vce(cl company)
Code:
. reghdfe invest i.ind#c.(mvalue kstock), a(company) vce(cl company) (MWFE estimator converged in 1 iterations) HDFE Linear regression Number of obs = 200 Absorbing 1 HDFE group F( 4, 9) = 41.89 Statistics robust to heteroskedasticity Prob > F = 0.0000 R-squared = 0.9477 Adj R-squared = 0.9440 Within R-sq. = 0.7818 Number of clusters (company) = 10 Root MSE = 51.3071 (Std. Err. adjusted for 10 clusters in company) ------------------------------------------------------------------------------ | Robust invest | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- ind#c.mvalue | 0 | .1149211 .0145496 7.90 0.000 .0820076 .1478346 1 | .0826851 .026561 3.11 0.012 .0226001 .1427702 | ind#c.kstock | 0 | .3211845 .0487084 6.59 0.000 .2109984 .4313706 1 | .1144632 .0133046 8.60 0.000 .0843661 .1445602 | _cons | -44.98113 20.41833 -2.20 0.055 -91.1706 1.208344 ------------------------------------------------------------------------------ Absorbed degrees of freedom: -----------------------------------------------------+ Absorbed FE | Categories - Redundant = Num. Coefs | -------------+---------------------------------------| company | 10 10 0 *| -----------------------------------------------------+ * = FE nested within cluster; treated as redundant for DoF computation
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