I am new to this forum and know only basic econometrics(self-studied). As a part of my research, I am looking at cattle feed usage levels (kg/cattle) in dairy farms as a function of extreme weather parameters. For this study, I have identified 100-panel balanced farms for a period of 20 yrs. My research question is: Does the seasonal /Monthly weather extremes impact the annual feed usage levels (kg/cattle) on the farm. I am at looking at within farm variation over time.
Interestingly, the overall average percentage of farms that purchased feed for the study period is only 53%. It means there are a lot of true zeros in the dependent variable. I read that Fixed Effects estimator will not be appropriate for the heavily right side tailed data.
I have decided to slightly modify my research question - Does the weather influence bulky feed purchase or not? To answer the same which of the model should I choose - xtlogit (fe, re) or xtprobit (re).
Please help me with the same.
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