Hi all, I want to run a regression between annual expense and sales, including a fixed effect for each firm (firm_code). I came across the codes:
proc glm;
absorb firm_code;
model expense = sales / solution noint;
run;
quit;
However, I am using a panel data including 4 years of observations for each firm. This means for each firm (firm_code) there will be four observations of expense and sales. As a result, I only need to create on dummy variable for each firm, I am not sure whether the command "absorb" does that, or does it create a dummy variable for every line of observation for firm? If there is any better ways of running fixed effects regression, please tell me Thank you in advance!
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