Fixed effects

[Christian Fink]

Dear forum,

I have a urgent question. I am writing my thesis about cross-border M&A. Hence, I use panel data . The literature often says, that they are using time and country fixed effects. The literature also states, that they cluster standard errors by time and country. How do I set up this in STATA correctly.

For the time being, I always used reg Y x i.timeFE, where timeFE is a dummy variable representing each year. However, since many regression results are in contrast to economic literature and logic, I am thinking that my STATA code is misleading.


Thank you in advance.

[William Lisowski]

Welcome to Statalist.

You have accidentally posted your topic in Statalist's Mata Forum, which is used for discussions of Stata's Mata language, which is different than Stata's command language, and different than Stata's matrix commands. Your question will see a more appropriate, and much larger audience if you post it in Statalist's General Forum.

Also, if you have not already done so, take a look at the Statalist FAQ linked to at the top of this page for posting guidelines and suggestions. Your question really isn't clear without more detail, or at a minimum it is too difficult to guess at a good answer from what you have shared. Please help us help you. Show example data. Show your code. Show us what Stata told you. Tell us what precisely is wrong. The Statalist FAQ provides advice on effectively posing your questions, posting data, and sharing Stata output.