Dear fellow Stata users,
I have the feeling that I am making a very simple mistake, but - for the life of me - I cannot seem to figure it out by myself. I have also found no post on this specific subject before that helped me - apologies if I overlooked something.
I am running a fixed effect model (time- and observation unit-pair-fixed effects) with xtreg and robust standard errors. I am including my original (continuous and time-variant) independent variable, a time invariant dummy term and the interaction between the two (the multiplication is executed in the original data set) as well as some control variables. In my output, the dummy terms gets omitted (as one would expect in the fixed effect model), but the interaction term does as well. Could anyone help explain why this is. I find it particularly interesting since the interaction term does not get excluded when I run the same model without the dummy.
Again, I believe I am making a very standard and easy mistake. All the more do I appreciate any help and explanation on the matter. I would even more highly appreciate if anyone has a solution to my problem.
Many thanks for your help,
Niklas
I have the feeling that I am making a very simple mistake, but - for the life of me - I cannot seem to figure it out by myself. I have also found no post on this specific subject before that helped me - apologies if I overlooked something.
I am running a fixed effect model (time- and observation unit-pair-fixed effects) with xtreg and robust standard errors. I am including my original (continuous and time-variant) independent variable, a time invariant dummy term and the interaction between the two (the multiplication is executed in the original data set) as well as some control variables. In my output, the dummy terms gets omitted (as one would expect in the fixed effect model), but the interaction term does as well. Could anyone help explain why this is. I find it particularly interesting since the interaction term does not get excluded when I run the same model without the dummy.
Again, I believe I am making a very standard and easy mistake. All the more do I appreciate any help and explanation on the matter. I would even more highly appreciate if anyone has a solution to my problem.
Many thanks for your help,
Niklas
Attached Files
