Hello! What about the "effect" option? I found that in my code it is necessary to specify [effect = "twoways"] when accounting both for state and year fixed effects, otherwise it just accounts for the first specified (in this example "state").
Great video, Diogo! Could you give me some idea about a topic for my bachelor thesis in Econ, having background in finance + R? Wanna write something related to commodities but I'm a bit lost. I to intend mention it in my application for a Msc. in finance later on... Abraços!
Hello Sir, could you please explain why there is no intercept in the r output of the fixed effect model? Also, what is the interpretation of a negative Adj. R square?
When you estimate a "within" effects model, each unit of analysis has its own intercept. For example, if your unit of analysis is countries, each country will have its own intercept. You are not comparing across countries, but change within a single country over time.
But this model is mis-specified as there are many other control variables needed. Based on Becker's theory you need a key variable as the clear up rate. Please check John Lott. Indeed, I am not sure if it would be better to consider violent crimes as count data instead of using rates
Thanks for the video. I am pretty new to the topic and was wondering if it would make sense to do a fixed effects regression in either of the following cases: 1. When the independent variable is different for every observation 2. When the independent variable can only be in one of two groups (and therefore is a dummy) Would appreciate your reply a lot, thank you!
Definitely for the second case. Not sure I get the first. Is it a continuous variable? The key idea of fixed effects is when there are differences among entities, like countries, companies or groups.
Download the R script from this video here: data-heroes-2.ck.page/fixed_effects_regression
Great video, needed help with a project that involved lots of panel data analysis. Cheers
Thank you. This was very clear, straightforward and helpful.
Thanks
Excellent video. Thank you for sharing. What do "within", "between", "random", "fd" and "hd" mean? what do I choose for a fixed effects model?
That was really helpful, thanks
Welcome!
Hello! What about the "effect" option? I found that in my code it is necessary to specify [effect = "twoways"] when accounting both for state and year fixed effects, otherwise it just accounts for the first specified (in this example "state").
How should one interpret negative r-squared?
Great video, Diogo! Could you give me some idea about a topic for my bachelor thesis in Econ, having background in finance + R? Wanna write something related to commodities but I'm a bit lost. I to intend mention it in my application for a Msc. in finance later on... Abraços!
@@DataHeroes No worries, thanks for your reply. Keep up with the good work!
Hello Sir, could you please explain why there is no intercept in the r output of the fixed effect model? Also, what is the interpretation of a negative Adj. R square?
When you estimate a "within" effects model, each unit of analysis has its own intercept. For example, if your unit of analysis is countries, each country will have its own intercept. You are not comparing across countries, but change within a single country over time.
@@arifmemovic3383 Thank you Sir
But this model is mis-specified as there are many other control variables needed. Based on Becker's theory you need a key variable as the clear up rate. Please check John Lott. Indeed, I am not sure if it would be better to consider violent crimes as count data instead of using rates
i guess the point of this one is just to teach you how to add fixed effects into the model.....
Thanks for the video. I am pretty new to the topic and was wondering if it would make sense to do a fixed effects regression in either of the following cases:
1. When the independent variable is different for every observation
2. When the independent variable can only be in one of two groups (and therefore is a dummy)
Would appreciate your reply a lot, thank you!
Definitely for the second case. Not sure I get the first. Is it a continuous variable? The key idea of fixed effects is when there are differences among entities, like countries, companies or groups.
switzerland is not part of the EU therefore also not the richest country of the EU