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What we should do when one variable may collinear with fixed effect?
What we should do when one variable may collinear with fixed effect?

When I generate a dummy variable called US_value which received the value of 1 if this firm is in US and 0 otherwise

gen US_value=0

replace US_value=1 if GEOGN=="UNITEDS"

However, when I run the regression, this variable colinear with fixed effect, what should I do with this US_value variable?

reghdfe wTOT_ASS_TUR pt US_value, a(TYPE2 yr)

Array

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What we should do when one variable may collinear with fixed effect?

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Home / Data Cleaning / Data management / Data Processing / What we should do when one variable may collinear with fixed effect? What we should do when one variable may collinear with fixed effect?

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