Hi,
I am currently running a fixed effect estimator on a balanced panel of 51 states across the year 2000-2010.
I want to investigate if there is unobserved factors that are time varying within states through state speciļ¬c linear trends.
I ran my regression as followed
xtreg y x1 x2 i.year c.year#i.state , fe
However I am not too sure if this is the right way to do it.
Would appreciate it if someone could give me their opinion.
Thank you
I am currently running a fixed effect estimator on a balanced panel of 51 states across the year 2000-2010.
I want to investigate if there is unobserved factors that are time varying within states through state speciļ¬c linear trends.
I ran my regression as followed
xtreg y x1 x2 i.year c.year#i.state , fe
However I am not too sure if this is the right way to do it.
Would appreciate it if someone could give me their opinion.
Thank you
