Fixed effects - subsamples instead of dummy variables
Posted: Sat May 11, 2013 7:16 am
Dear all,
I'm aware that I cannot use non-time-varying variables such as gender in cross-section fixed effects. I would, however, still like to check for such differences in my panel (in my case checking for differences between country subgroups like Latin America and Sub-Saharan Africa).
Would it be appropriate to, in addition to the main sample, estimate my equations across various subsamples to check for such differences? My main sample contains about 150 countries whereas the smallest subsample consists of about 12 countries.
Thank you for help!
I'm aware that I cannot use non-time-varying variables such as gender in cross-section fixed effects. I would, however, still like to check for such differences in my panel (in my case checking for differences between country subgroups like Latin America and Sub-Saharan Africa).
Would it be appropriate to, in addition to the main sample, estimate my equations across various subsamples to check for such differences? My main sample contains about 150 countries whereas the smallest subsample consists of about 12 countries.
Thank you for help!