Hi
I am studying homicide rates in developing countries over a 12 year period and using a fixed effect model. My dependent variable is the log of homicide rates and my explanatory variables are growth in GDP %, GDP per capita, GINI index, Human development Index, Consumer Price Index, Urbanization rate %, Unemployment rate%, capital punishment and existence of legislation on domestic violence. I have also included dummy variables for Religion.Now variables capital punishment and domestic violence are dummy variables and time invariant as well. So when I run the xtreg ,fe command for my model, as expected my religion variables are omitted as they are time invariant. But why do I get an estimation values on capital punishment and domestic violence in the fixed effect model? Aren't they supposed to be omitted as well given they are dummy variables?
Please help
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