I am doing an analysis on panel data of 30 countries. I want to control year effect, industry effect and country effect in a single regression. Please explain how can I used these three in a single regression model. For example, my regression model looks like this:
Y = a + IV + year effect + industry effect + country effect + e
Hi,
I think it was better for your research to use a RSM model with Design expert software. It can help you to find the regression model. But you can use the other statistics software for example SigmaPlat to model the three-factor regression. You can select one X and multiple Y data analysis to find your model.
You can use multiple regression to get an equation of four terms. Constant, country effect, year effect and industry effect. The values of beta will give you which of these three parameters was more effective than the others. The sign of each term indicate positive or inverse relation. Additionally, you can found an equation or model without a constant and compare the two models to find which of them is proper for your research.
Rainer Duesing I want to know that which regression model or a STATA regression command that can control fixed year fixed industry effect and country fixed effect in a single regression model. Most of the previous studies use year fixed effect and industry fixed. However, there are few cross country studies that also control for country fixed effect.
In many software you simply define the year variable as a factor. So in R, as.factor(country), and then it will treat it as a factor. I don't know what you mean by include as a fixed effect and CONTROL for. Obviously nothing you are doing is controlling things in any real sense, but in the way the word is often used in regression classes including it does mean the coefficients for the other variables are after conditioning on this variable. btw, those three variables I assume all have several values, and if you include all the two and three-way interactions for them that is a lot of estimates. Do you have a very large data set?
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