Hello everyone, I am running a regression where I would like to control for both region and time fixed effects.
When I only control for region fixed eff my errors are normally distributed. But as soon as I control for time fixed effects errors are not nor distributed anymore.
I think in my case it is important to meet this assumption of ols because I have to do hypothesis testing. Please find my results attached.
I would like to know the reasons why this might be the case and how could I solve it ( I am aware that I could use xtreg for fixed effects in panel data, but I would like to continue working with dummy variables)
I already transformed my explanatory var to make them normal, I also tried the reggresion with lnyrsc instead of yrsc, but nothing worked so far
Thanks for your help
Related Posts with Not normally distributed errors after controlling for time fixed effects
Exact matching command with panel data (diff-in-diff analysis)An example of my data set is the following: Code: +-----------------------------------…
IPWRA and PSMATCH, how to choose..Hi all, I have a longitudinal dataset with individuals some of which received a treatment at some t…
reshapeHi, I am trying to reshape my data. Stata says that the data is currently wide. The current data is…
ivreghdfe cannot show first stage outcomeDear statalist, I am using ivreghdfe and want to know the regression in the first stage. However, s…
Finding stock beta with a forvalues loopI am performing an event study and am trying to estimate the beta of 60 different public companies d…
Subscribe to:
Post Comments (Atom)
0 Response to Not normally distributed errors after controlling for time fixed effects
Post a Comment