Hi statalist, I'm looking at panel data across countries and industries, so for example with 10 industries across 5 countries across 10 years would yield 500 industry_country_yearl observations. Now I have been asked to include an initial level of the dependent variable that controls for variation in industry and country. So with regression model for industry i, in country z at time t would show as:
reg depvar(i,z,t) control(i,z,t) initial_level(i,z) independentvar(i,z,t) controls, fe
Is this a correct specification of the initial level control?
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