Hi,

I am running a panel regression with a DiD setup and fixed-effects. I have obtained significant results for the years that I am interested in. However, there is one thing that worries me. Although my did estimators (interaction btw post & treated) have negative and significant coefficients (which proves my hypotheses), their impact might be dwarfed by the larger impact of the control variables (GDP Growth, INFLATION, UNEMPLOYMENT, RATES). For instance, the impact of rates are 17 (?) which seems very large compared to my did estimator. My dependent variable is loan growth.

I made sure that each of them scaled to the same style (i.e., loan growth = 0.02, gdp growth = 0.01 etc.)

Now, while I am writing this post, I realized what might be an issue. My dependent variable is loan growth which is calculated as annual % changes between years. But the control variable interest rates is not. They are the average duration of 10Y Government Bond yields in a given year (i.e, 2016 = 1%, 2017 = 2. this control variable is not calculated as % changes from year to year). On the other hand, the coefficient of GDP growth is rather small. Perhaps this is because it is calculated as the growth between the GDP between years. So it is consistent with the dependent variable.

I am confused about interpreting this result and would like to receive your valuable insights.
dependent variable: loan growth (1) (2) (3)
VARIABLES 2019 2020 2021
did_estimator_2019 -0.0487***
(0.0161)
post2019 0.0186*
(0.0112)
GDP Growth 0.234*** 0.230*** 0.237***
(0.0765) (0.0763) (0.0756)
UNEMPLOYMENT 2.644*** 2.491*** 3.071***
(0.343) (0.351) (0.360)
INFLATION 2.148*** 3.240*** 1.828***
(0.293) (0.609) (0.288)
INTEREST RATES 17.55*** 16.18*** 17.33***
(1.024) (0.751) (0.696)
did_estimator_2020 -0.0353***
(0.0119)
post2020 -0.0140
(0.0111)
did_estimator_2021 -0.0224*
(0.0121)
post2021 0.0416***
(0.00482)
Constant -0.418*** -0.389*** -0.434***
(0.0213) (0.0127) (0.0129)
Observations 2,227 2,227 2,227
R-squared 0.535 0.535 0.543
Number of ID 373 373 373