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if the construction of two control variables contains the same variable, can I add them in the same regression at the same time?
if the construction of two control variables contains the same variable, can I add them in the same regression at the same time?

Hello,

In a random effect regression, I have the control variable1: Ln(Total asset) and control variable2: PPETA ( the ratio of fixed assets to total asset), Their correlation is 0.234***.

Can I add them in the same regression at the same time? As denominator of PPETA is the total asset, which is as same as the value in LN(Total asset). I worry that the result may be affected if I add both of them in the regression at the same time.

Could you please give me some suggestions about this ?

Thanks in advance.

BJ Data Tech Solution

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