Hi All,
As I am replicating a paper, I will use 9 years of data instead of their 2 years. To take advantage of this fact I want to use panel data.
In this paper they use tobit and logit regression (cross section) for a dummy dependent variable to test determinants of the dummy being 1. I would like to do the same, but then with Panel Data. As I would like to incorporate both year and firm fixed effects (also industry fixed effects, but it appears these are collinear with firm fixed effects), I can't use the xtlogit or xttobit function.
What is the best way to cope with this? Is it perfectly fine to use reghdfe with a dummy variable as your dependent variable? And in addition, I seem to get very low within r-squared (0.01) when I perform the reghdfe with year and firm fixed effects absorbed, but very high overall r-squared (70%). Is this reasonable?
Best,
Martin
Related Posts with Incorporating Year and Firm Fixed Effects in Panel Data with reghdfe, but how?
Creating Mills RatiosHi all, This is my first post here so I apologise in advance if I've broken any rules, and I also a…
Binary Variable GraphHello all, I simply want to plot a graph with the number of times a binary variable (civil war inci…
How to create variable of relative change?Dear experts, I have a dataset including monthly observations from June 2017 - June 2019, where I w…
Annualising coefficients in a loopHi all, I am currently working on project about volatility timing. The data I am working with is dai…
extract table from multiple pages of the web by Stata ?Hi , I'm now trying to extract data from web " https://ift.tt/2HE5woy" , there are a lot of pages in…
Subscribe to:
Post Comments (Atom)
0 Response to Incorporating Year and Firm Fixed Effects in Panel Data with reghdfe, but how?
Post a Comment