Dear all, I am regressing the impact of Netflix subscriptions on theatrical admissions in 16 countries from 2012 to 2017.
I have heterogeneity, hence I run
xtreg logadmissions lognetflixsubscribers loggdp averageTV, fe vce (robust)
xtreg logadmissions lognetflixsubscribers loggdp averageTV, re vce (robust)
and xtoverid test to decide which one is a better fit.
The result of the test shows that FE model is a better fit p<0.05. My question is, as you can see I don't use i.year and i.country variables in my model because of small sample size and low degrees of freedom. If I don't add time fixed effect in to my model as a result of this constraint, would be wrong? What can I do as an alternative? or shall I keep my model?
(Here is my FE regression results.)
Thank you.
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