HI all
I am studying the effect of firm-level adoption MM ( a binary variable ) on its energy intensity using panel datasets from WBES for three countries (unbalanced panel data). I have run fixed effect model and now I am running fixed-effect 2SLS model. I tried to use xtivreg2 but it run on only 32 observations out of 680 due to dropped singelton observations. so, should I shift to ivreghdfe or ivreg2, and if so should I cluster the standard error by firm_id or should I resort to two-way clustering by including industry type or region of establishment. Actually, I am confused about the singelton issue, am I wrong for defining my data as panel or can I resort to ivreghdfe and consider the absorb option of multi fixed effects.
Here is the code that I have tried so far:
Thanks in advance
I am studying the effect of firm-level adoption MM ( a binary variable ) on its energy intensity using panel datasets from WBES for three countries (unbalanced panel data). I have run fixed effect model and now I am running fixed-effect 2SLS model. I tried to use xtivreg2 but it run on only 32 observations out of 680 due to dropped singelton observations. so, should I shift to ivreghdfe or ivreg2, and if so should I cluster the standard error by firm_id or should I resort to two-way clustering by including industry type or region of establishment. Actually, I am confused about the singelton issue, am I wrong for defining my data as panel or can I resort to ivreghdfe and consider the absorb option of multi fixed effects.
Here is the code that I have tried so far:
Code:
ivreghdfe EE20152 finance_measure R_D human_capital labprod2015 exporter foreign_ownership ln_age firm_sizeWBES industry_type i.year (MM = new_var_2 ) [pweight=average_wstrict ], robust cluster (unique_id_01 ) endog (MM)
Code:
ivreg2 EE20152 finance_measure R_D human_capital labprod2015 exporter foreign_ownership ln_age firm_sizeWBES industry_type i.year (MM = new_var_2 ) [pweight=average_wstrict ], endog(MM) robust
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