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True, I think I will have to go with simply leaving a dummy variable out, eventhough Im note convinced.

Do you understand this, and how this should interpreted?
"The ommited category acts as a reference group, and all effects are relative to this group."

in "A guide to Modern Econometrics" third edition, by Marno Veerbeek, he states on page 80: (working on a wage-example) "Note that with five educational levels, in the inclusion of four dummies is sufficient to capture all effects. By including five dummies, we would fall into the so-...

Thanks again Startz. I have actually already done what you said. Essentially I dont understand why my x-variables should be exposed to perfect multicollinarity, as I think I havent included any redundant variables. But I can run the model, including the constant with if I, ex. add the following: yea...

Hi Startz, Thanks alot for the reply. I think you are right, that I infact have the dummy variably trap. What do you mean by "complete set of dummies?" In my 9 year and 9 industry dummies, all my observations, fits into one year and one industry category. Is that what you mean? I can´t see...

Hi, I have searched the web, including this forum, but with no success, so I was hoping someone could help me with my problem. I get the following error when trying to run my model: "Near Singular Matrix Error - Regressors may be perfectly collinear." The command im running is: ls roa_did ...