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  • multicolinearity

    I'm facing challenges when attempting to incorporate country and sector fixed effects into the model. Whenever I try to include them, a collinearity problem arises by tbe way and i am working with the command xtreg and fixed effect model

  • #2
    Jihedif:
    welcome to this forum.
    They are perfectly collinear with the fixed effect.
    No solution, but going using a different specification and/or going -re-.
    Kind regards,
    Carlo
    (StataNow 18.5)

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