My goal is to study the effect of new feature introduction by online platform on the ratings reported by platform users for a sample of companies. The newly introduced feature became available to all platform users. Each user could self-select to (a) use the feature, and (b) provide ratings. The rated companies have no control over that feature's use by platform users. In other words, after the introduction of the feature the companies could have ratings reported by both types of users, i.e., those who chose to use it and those who chose not to.
The original data are collected at the user (review) level, which I aggregated at means by company id and year:
Code:
xtset panel variable: id (unbalanced) time variable: year, 2007 to 2019, but with gaps delta: 1 unit xtdescribe id: 1, 2, ..., 762 n = 747 year: 2007, 2008, ..., 2019 T = 13 Delta(year) = 1 unit Span(year) = 13 periods (id*year uniquely identifies each observation) Distribution of T_i: min 5% 25% 50% 75% 95% max 1 3 7 8 9 9 11 Freq. Percent Cum. | Pattern ---------------------------+--------------- 165 22.09 22.09 | ....111111111 163 21.82 43.91 | .....11111111 84 11.24 55.15 | ......1111111 60 8.03 63.19 | ....1.1111111 35 4.69 67.87 | .......111111 23 3.08 70.95 | ...1111111111 20 2.68 73.63 | ...........11 20 2.68 76.31 | .........1111 20 2.68 78.98 | ......1.11111 157 21.02 100.00 | (other patterns) ---------------------------+--------------- 747 100.00 | XXXXXXXXXXXXX
Code:
gen feature = (year >= 2015) & !missing(year)
Code:
xtreg y feature control1 control2, fe vce(robust)
Does my approach seem appropriate to capture the effect of new feature introduction on the outcome? I would appreciate your feedback.
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