Demeaning the Data (Fixed Effects)

Using mm.dta:

• Use egen with bysort qnno: to calculate the household-specific mean for yield.
• Do the same to calculate the household-specific mean for fertilizer cost totfertcostha.
• Generate demeaned versions of both variables by subtracting the household mean from the original value (e.g., dm_yield and dm_fert).
• Run a regression of the demeaned yield on the demeaned fertilizer, clustering standard errors by qnno.

1. Use eststo to save the demeaned results. Then adapt the table structure from the previous exercise to create a table of results with a third column headed Demean.
2. What is the coefficient on fertilizer cost in the demeaned regression and how does it compare to the coefficients you calculated in Exercises 1?

---