Dear All,
I have a question.
I'm running regressions to see the aid-effectiveness by country-fixed-effect model.
My question is that I have two options, which is that simply running regressions by fixed-effect model, or regression which included country and i.year variables as independent variables.
1) xtreg y x1 x2 .........., fe
2) reg y x1 x2........... i.year country (i.d.)
Which is better to see the correct result?
p.s.)
D.V. is education enrollment rate.
I include education aid amount as independent variables as well as the interaction terms with recipient political stability status to see the effects of such political status on aid-effectiveness. Also, country variable is for recipient countries' identifications. Time series is from 2002 to 2017.
Kosho
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