Xtset Stata Fixed Effects. Xtset without argumentsxtsetdisplays how the data are currently xtset. Indepvars may contain factor variables.
The variables are. Y it β 1X it α i u it eq1 Where α i i1n is the unknown intercept for each entity n entity-specific intercepts. Where analysis bumps against the 9000 variable limit in stata-se they are essential.
We use the notation yit Xitb ui vit That is ui is the fixed or random effect and vit is the pure residual.
Fixed effects The equation for the fixed effects model becomes. What you want to include as explanatory variables it appears is a set of binary indicator variables to allow your model intercept to vary with firm and partner industry. Generate dummy variables for every year. SeeXT xtdata for a faster way to fit fixed- and random-effects models.
