Dear all,
When using the Mundlak procedure, if one wishes to include year fixed effects (i.e. a dummy variable for each year except one) to control for year-specific shocks, should one also include the mean of each year's dummy variable? If I use the "mundlak" command, stata automatically includes these means when I have year dummies as right-hand side variables. However, I'm not sure if this is correct.
Thank you!
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