How does one go about including country-pair fixed effects in plm package
regressions (OLS, RE, FE, and Hausman-Taylor estimators)? I am hoping to use plm
because it is very easy and I'm baby-new to R.
I have received the following code from a kind professor who I don't
actually know:
pairid <- paste(isoex,isoim)
isoexyear <- paste(isoex,year)
isoimyear <- paste(isoim,year)
# do not worry about the other variables, focus on the G() portion which is
using Pair FE, exporter-year, and importer-year
felm(ln_trade~bc_o + l_bc_o + bc_d + l_bc_d + G(pairid) + G(isoexyear) +
G(isoimyear),
clustervar=as.factor(pairid), data=gravity_data)
I have no idea how to implement that code at all and figure there has to be some
simpler way than using a complicated method in felm.
Be well. I appreciate your time.
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