Challenge 11 (Fixed Effects)

This challenge combines everything you’ve learned about Fixed Effects, estout, and coefplot to test the sensitivity of the icp coefficient across multiple Fixed Effect specifications.

• Load the mm.dta dataset.
• Run the following four models and store their estimates (e.g., eststo c1, etc.):
  • Model 1: Pooled OLS (reg). Regress yield on icp totfertcostha totchemcostha.
  • Model 2: Time Fixed Effects (reg). Add i.tindex to Model 1.
  • Model 3: One-Way Fixed Effects (xtreg, fe). Add xtset and run the model without time dummies.
  • Model 4: Two-Way Fixed Effects (xtreg, fe). Add i.tindex to Model 3.
• For all 4 models, cluster the standard errors by qnno.

1. Use esttab to create a table of the coefficient on icp across all four models. Adapt the table structure from Week 10, Exercise 4 to create a table of results. In your lastname.tex, include the table using \input{11-challenge-regs.tex} inside a table environment that I provide for Assignment 11 in Overleaf. Give the table a caption and label.
2. Use coefplot to graph the coefficient on icp across all four models. Adapt the figure structure from Week 10, Exercise 7 to create a single figure of results. Add a horizontal line at 0 (xline(0)) and customize the legend to cleanly label the four models. In your lastname.tex, include the graph using \includegraphics[width=0.8\textwidth]{11-challenge-coefplot.png} inside a figure environment. Give the graph a caption and label.

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