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  • Dummy Variable Interpretation - Gravity Equation

    Hello everyone!!!

    Im a new in this forum and through my first research paper I have been reading many usefull answers.

    I have a question and I need your help.

    I did a research several years ago using gravity equation. I tested a trade effect using a dummy variable. Now, Im updating this research and I have problems with interpretation of results.

    For my previous research I had the dummy value of interest in 0.401 using fixed effect and time dummy variable for robustness check, which means that trade will increase in 49% since the model was estimated in log.

    Now, I have a result of 15.05 in a fixed effect time dummy estimation but if I want to state how much trade will increase I cant say about millions percent....

    What this means? Should I have something wrong on my research results??

    I have runed OLS, RE and FE later hausman test and then FE and FE&Time

    Thanks in advance.

  • #2
    Welcome to Statalist, Jessica!! Unfortunately, you've posted in the wrong forum. The Sandbox Forum is the place
    to make test posts, practice with the formatting features of the forum software, etc.
    Post in the General Forum. Be sure to read the Statalist FAQ, especially FAQ 12, which describes how to write a question that is likely to get an answer.
    Steve Samuels
    Statistical Consulting
    [email protected]

    Stata 14.2

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