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  • PPML Country Pair Fixed Effects

    Hi All,

    I am trying to run a bilateral trade gravity model using PPML and trying to control for country-pair fixed effects. I am trying to control for country-pair fixed effects by introducing country-pair dummies in the PPML. I am using the following commands to create the country-pair dummies.

    egen pair=group(exporter importer)
    tab pair, gen(pair_dum)

    However, I am receiving an error message stating that there are too many values. I would really appreciate if you could please help me to solve this problem.

    Thanks
    Bibhu

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