Hi Statalist,
I just joined the community and I would like to ask a question that I couldn’t solve for my analysis.
I try to use a two way fixed effect model to see the effect of some policy on revenues of restaurants.
I have data on restaurants of different cuisines for Feb and Mar. I control for date fixed effects and cuisine fixed effects, the code is:
regress Revenue i.date i.cuisine i.cuisine#post, robust
However, I found there is a within week cyclical trend for some cuisines, so I want to control for the interaction fixed effects for (Monday to Sunday) x (cuisines), So I run
regress Revenue i.date i.cuisine i.cuisine#post i.weekday#i.cuisine, robust
however, my i.weekday#i.cuisine were all dropped because of multicollinearity, which makes sense after I pondered for a bit. So my question is, how should I control for the weekday fixed effects in this two way fixed effect model? Thanks!
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