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  • How to code the Difference-in-Differences (one event date) in Stata?

    Dear Statalist experts,

    For example, I am examining the impact of anticorruption on firms' productivity in Myanmar.
    I have a variable pt equalling 1 if this observation is after the enforcement date and pt=0 if it is before the enforcement date. And treatment group is the financial service industry while firms in other industries are control. So the variable for treatment group is financial=1 if firms in financial service industry nad 0 otherwise

    Assuming I have the dependent variable is y and the independent variable are x1 x2 x3

    I deem that I will regress

    Code:
    xtset firmid year
    
    xtreg y pt#financial x1 x2 x3, fe vce(cluster firmsid)  /*two-way fixed effect and clusterby firms*/
    Afterward, I will look at the significance and magnitude of coefficient of "pt" to affirm the impact of laws on y, I am wondering whether it is a correct thought?
    Let's say I have the variable for industry is INDC , I wondering how to add the industry fixed effect or indsutry*year fixed effect into the regression?

    Thanks in advance.
    Last edited by Phuc Nguyen; 13 Sep 2022, 06:02.

  • #2
    Data example please.

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