Hi all,
I am running a regression using "reghdfe", with state fixed effect (FE), time FE, and state linear/quadratic/cubic time trend. I wonder if my codes are correct:
gen yearsq=year*year
gen yearcb=year*year*year
reghdfe Y X1 X2 X3, absorb (state year i.state#c.year) for linear time trend
reghdfe Y X1 X2 X3, absorb (state year i.state#c.year i.state#c.yearsq) for quadratic time trend
reghdfe Y X1 X2 X3, absorb (state year i.state#c.year i.state#c.yearsq i.state#c.yearcb) for cubic time trend
Are there differences if I code like this:
reghdfe Y X1 X2 X3 i.state#c.year i.state#c.year#c.year i.state#c.year#c.year#c.year, absorb (state year)
Thank you very much if you could help me to explain this.
Thien.
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