Dear all,

I have searched for a while and found what I believe to be the answer however I wanted to double check my interpretation.

I have a fixed effects regression which I have conducted using -xtreg, fe-. This has fitted a model, I've done the relevant tests but I am now trying to interpret my coefficient. Several documents and my own knowledge affirm that the output stata produces shows the coefficients to the variables as if they were computed using LSDV analysis.

Thus if my stata output of -xtreg y x, fe- shows a coefficient of 2, I should interpret this as a unit change in x increases y by 2 and NOT that a unit change in the deviation of x from the individual mean of x increases the deviation of y from the individual mean of y by 2?

Many thanks for your help.

Ethan