Interaction with fixed effect
Posted: Wed May 27, 2015 4:51 am
Considere 3 countries: DE, US and BR
For each country I have a specific time series y1, y2, y3 and a global factor z
I counstrcut the following panel and I run the following regression:
pool model_FE de us br
model_FE.ls(cx=f) y1_? y2_? y3_? z_?
How do I interact the country fixed effects with the exogenous variable z to estimate its impact on y1, which is country specific?
For each country I have a specific time series y1, y2, y3 and a global factor z
I counstrcut the following panel and I run the following regression:
pool model_FE de us br
model_FE.ls(cx=f) y1_? y2_? y3_? z_?
How do I interact the country fixed effects with the exogenous variable z to estimate its impact on y1, which is country specific?