Hello everyone,

Currently I am trying to regress a sample of approximately 1600 funds over 131 (monthly) time periods. About 180 of these are liquidated funds, 80 are merged funds and the rest are active funds. Therefore I made 3 dummys, for each of the type of funds. However, when I try to regress a fixed effects model with clustered standard errors (there is heteroskedasticity and autocorrelation and the hausman test has shown evidence for a fixed effects model) and I include the 3 dummy variables, it says the dummys are omitted due to collinearity. How can I avoid this? I would be really grateful if someone could help me.

Kind regards,

Luc