Dear experts,
I have a question regarding the omitted variables during a dummy variable regression. I have a panel data set from the year (YEAR) 1990-2021 and I do a dummy variable regression using
(with the constant). I get the following output:
My understanding is that 1990 dummy is omitted by stata to avoid the dummy variable bias and the coefficients of the other dummy variables are w.r.t. to the dummy variable for 1990. However, the 2021 dummy variable is also omitted. So, my question is if there is any way to avoid the omission of 2021 dummy variable because I am interested in getting the coefficient of 2021 dummy variable?
Or I need to get rid of the observations for 2021 and the corresponding dummy variable (I tried this and then only one dummy variable(1990) is dropped)?
Thanks in advance,
Monit
I have a question regarding the omitted variables during a dummy variable regression. I have a panel data set from the year (YEAR) 1990-2021 and I do a dummy variable regression using
Code:
xi: reg <control variables> i.YEAR
Code:
i.YEAR _IYEAR_1990-2021 (naturally coded; _IYEAR_1990 omitted) note: _IYEAR_2021 omitted because of collinearity.
Or I need to get rid of the observations for 2021 and the corresponding dummy variable (I tried this and then only one dummy variable(1990) is dropped)?
Thanks in advance,
Monit
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