I am trying to estimate a granular commuting gravity equation (As described in http://www.jdingel.com/research/DingelTintelnotSEGS.pdf , estimated model in pages 15-16).
I have a cross-sectional commuting matrix which contains roughly 2600 regions, and I am interested both in the coefficent of commuting time, and the origin and destination fixed effects.
I estimate the following model:
Code:
ppmlhdfe commutes dist, absorb(origin_code dest_code) tolerance(1.0e-10)
Code:
- To save the estimates specific absvars, write newvar=absvar. - However, be aware that estimates for the fixed effects are generally inconsistent and not econometrically identified.
1. Is there a way to consistently estimate the fixed effects using ppmlhdfe?
2. I am replicating the methodolgy in the working paper linked above. The paper uses ppmlhdfe for estimation, and reports destination fixed effects (page 19). Am I mis-specifying the equation or missing something else?
Thanks in advance,
Gal
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