topic industry and year fixed effects in Statistical Procedures

industry and year fixed effects

amanjot_42 — Fri, 07 Jun 2019 07:57:15 GMT

Hi guys,

Can you please help me in running my regression equation with industry and year fixed effects. I tried looking at the other posts, but could not gather much about the same. I have two independent variables and want to append industry and year fixed effects in the regression model:

Dependent variable: Y

Independent variables: X1 and X2

Fixed Effects: Industry and Year fixed effects

Regards

Aman

Re: industry and year fixed effects

Rick_SAS — Sat, 08 Jun 2019 10:27:23 GMT

I assume that X1 and X2 are also fixed effects, but Industry and Year are categorical variables? If so, try using PROC GLM like this

proc glm data=Have;
class Industry Year;
model Y = X1 X2 Industry Year / solution;
run;
quit;

If you want to discuss details, we can use one of the data sets that SAS distributes:

proc glm data=Sashelp.Cars(where=(Type^='Hybrid'));
class Origin Type;
model MPG_City = Horsepower EngineSize Origin Type / solution;
run;

Re: industry and year fixed effects

amanjot_42 — Mon, 10 Jun 2019 09:26:59 GMT

hi,
thanks for your reply, after running the code, the screen goes blank with no further updations or results?!

Re: industry and year fixed effects

Rick_SAS — Mon, 10 Jun 2019 10:15:39 GMT

Please post the exact code you submitted and also the SAS log. My guess is that you have a syntax error.

Re: industry and year fixed effects

amanjot_42 — Mon, 10 Jun 2019 12:13:59 GMT

Hi,
I am using the following code:
proc glm data=Have;
class Industry Year;
model Y = X1 X2 Industry Year / solution;output out=result r=residuals;run;
quit;

Re: industry and year fixed effects

Rick_SAS — Mon, 10 Jun 2019 12:42:03 GMT

That code will work if your data set is named HAVE and it contains variables named Y, X1, X2, Industry, and Year. (And Industry and Year have a relatively small number of levels.) Unless you are excluding the ODS output, the procedure will display tables.

If your data set or variables have a different name, there will be an error message in the SAS log, so please post the entire SAS log, as requested previously, so that we can see the exact code you submitted and the SAS notes, warnings, and errors.