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  • district fixed effects along with state by year fixed effects and district specific time trends in a regression

    Hello, I have a treatment at the district level while the outcome is at the individual level, so I have employed district-fixed effects, year-fixed effects, state-by-year fixed effects, and district-specific time trends in my regression. Is this alright?
    My understanding is that while district-specific time trends just only capture variation in one direction either it is always up or always down, state-year fixed effects allow us to capture other variation at the state level with the year either up or down. But my question is will the direction that is captured by the district trend be subsumed by the state year fixed effects?

  • #2
    Sara:
    please follow the FAQ when posting. Thanks.
    Your query does not provide interested listers with any detail about your data.
    That said, I'm under the impresison that you have too many fixed effects, that make coefficients interpretation difficult.
    When deciding the regression specification, considerations about results dissemination should be carefully considered.
    Kind regards,
    Carlo
    (StataNow 18.5)

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