Thursday, March 09, 2006
st: Partial Relation in Fixed Effects Estimation
I really appreciate the help people provide on this board.
I'm running fixed-effects regressions to estimate the impact of var1 on growth using the following command.
tsset id year
xtreg growth var1 var2 , fe
var1 turns out to have significant impact on growth in this specification.
I'm interested in generating a scatter plot of growth and var1 conditional on control variable var2 and the fixed effects (id dummies). I would like to visually inspect this relationship to see which observations are driving the results. That is, I want to identify the within-id variation that's giving me the fixed effect results.
To do this I've done this:
xtreg growth var2, fe predict growthres, e
xtreg var1, fe predict var1res, e
reg growthres var1res twoway scatter growthres var1res
I was hoping to obtain the residual growth conditional on var2 and the id effects and obtain the residual of var1 conditional only on the id effects. Then I wanted to plot the residuals to see which observations were important for the results.
But when I run the regression of growthres on var1res, I get no significant results and the scatter plot is basically a cloud. This doesn't seem consistent with the initial result from running the regression (at the top).
Would anyone know of a way to do something like this to identify the within-id variation that's giving me the results?
Thanks very much for your help.
Jason * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/
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