Hi,
I am using a dataset for 25 countries over the period of 5 years (balanced panel) with a few missing values randomly.
The IV and DV both are in fractional form, i.e., values in between 0,1.
I am recommended to use fracreg model but there are questions that I want to ask:
1) I read on statalist, that I need to add time averages of covariates to mimic the model as fixed effects model. If that's necessary, how to do that? and why do we need to do that? And by doing so, we need to add the same (number) average for all the years for each country? Will it not just take away the variability of the data?
I wish to keep the time/country fixed effects in the results. How can I achieve that?
2) What are the necessary treatments before running fracreg on panel data, if any?
Thanks
Ahmed
P.S. I am not very good at technical "econometrics".
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