Hi, when I try to perform panel regression using fixed effect on STATA with dummy variables, STATA "Omit" my variable in the result. It shows "omitted". How can I avoid that?
Of all the abundance of explanations out around the net, this one is the most intuitive. Simple as it is it tells much more than many more sophisticated and intricate ones, I’ve encountered so far. Thank you and keep it up!
Thanks, Nathan for the valuable presentation. Actually, this was something that concerned me when I saw different coefficients of X and different constant terms in the 2 equations of the OLS model. Now I understand the concept
Thanks, I already knew this stuff but I was screwing up my answer because I read the regressions the other way around and this helped me realise I wasn't going crazy.
So unfortunate to don't show how overidentifying test works, and just give a stata command.... so we will run the stata command without understanding how it works behind... pretty useless
Z is the instrumental variable which is the part of X that indirectly explains predicted car price (x itself) without having anything to do with "u", thus Z affects Y through X only. So Z is introduced by the author as a more error-free, purely exogenous version of X.
