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Should I use a Fractional outcome regression?
Should I use a Fractional outcome regression?

I have panel data with an outcome variable that ranges from 0-0.6 and theoretically can get up to 1 (but never does). t=20 and n=130.
The outcome variable is the number of positive sentences a person says divided by the number of all sentences a person says. There are, of course, countless combinations. e.g., 0/100, 6/13, 1/128, 240/4578, and so forth.
Can I use the "classical"

HTML Code:

xtreg Y X  i.year, fe vce(cluster unit)

or should I use a fractional outcome regression?

Thanks,
Dan

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Should I use a Fractional outcome regression?

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