I have ten regions and I created dummy variables for them. When I run my model one of them shows omitted, so I had to exclude the one showing omitted,and then I got significant result. But I need "the coefficient value of the excluded variable" to estimate Total Factor Productivity.
If possible, could you please explain how I can calculate it,dear colleagues.
See my answer to the same question that you asked at
https://www.researchgate.net/post/Why-does-SPSS-exclude-certain-variables-from-a-regression
it is about dummy variables that form a closed set.
There are several methods to estimate the coefficients of excluded variables in regression, including:
It's important to note that these methods are not always appropriate and it depends on the specific problem at hand and the assumptions that are made. It's important to consult with an expert in econometrics or statistician if you have any question or doubt.
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