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I would like to absorb time FE in my regression as well as include a categorical variable among my explanatory variables (for age brackets).
When including age bracket FE as a regressor and absorbing time FE, I get the following message: "Warning: *variance matrix is nonsymmetric or highly singular" and SE are not estimated.
However, when running the exact same model while absorbing both time FE and age bracket FE I get no warning and all SE are estimated. Is it same to use these results?
PS: I am specifying robust standard errors in both estimations mentioned above. The same happens when I specify clustered standard errors for both estimations. This issue only does not happen when my standard errors are neither clustered, nor robust.
. ********************* I get the warning message when I estimate coefficients for age bracket and absorb time FE
. reghdfe avg_peer_cost iv_age iv_fem iv_uni pat_fem pat_age i.age_int, absorb(ym) vce(robust)
(MWFE estimator converged in 1 iterations)
Warning: variance matrix is nonsymmetric or highly singular
HDFE Linear regression Number of obs = 7,148,998
Absorbing 1 HDFE group F( 21,7148887) = 10378.63
Prob > F = 0.0000
R-squared = 0.0330
Adj R-squared = 0.0330
Within R-sq. = 0.0292
Root MSE = 2096.0537
----------------------------------------------------------------------------------
| Robust
avg_peer_cost | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-----------------+----------------------------------------------------------------
iv_age | -31.59436 . . . . .
iv_fem | 411.207 . . . . .
iv_uni | 738.8013 . . . . .
pat_fem | -386.0751 . . . . .
pat_age | 10.79922 . . . . .
|
age_int |
20 to 25 years | -1180.342 . . . . .
25 to 30 years | -1009.705 . . . . .
30 to 35 years | -795.4957 . . . . .
35 to 40 years | -708.4765 . . . . .
40 to 45 years | -698.3601 . . . . .
45 to 50 years | -755.683 . . . . .
50 to 55 years | -831.5416 . . . . .
55 to 60 years | -909.2266 . . . . .
60 to 65 years | -979.1657 . . . . .
65 to 70 years | -935.7501 . . . . .
70 to 75 years | -788.7044 . . . . .
75 to 80 years | -607.2163 . . . . .
80 to 85 years | -902.8926 . . . . .
85 to 90 years | -975.3231 . . . . .
90 to 95 years | -864.3475 . . . . .
95 to 100 years | -177.4297 . . . . .
|
_cons | 3718.518 . . . . .
----------------------------------------------------------------------------------
Absorbed degrees of freedom:
-----------------------------------------------------+
Absorbed FE | Categories - Redundant = Num. Coefs |
-------------+---------------------------------------|
ym | 90 0 90 |
-----------------------------------------------------+
.
.********************* I don't get the warning any longer when I absorb the coefficients of age brackets together with time FE
. reghdfe avg_peer_cost iv_age iv_fem iv_uni pat_fem pat_age, absorb(ym age_int) vce(robust)
(MWFE estimator converged in 4 iterations)
HDFE Linear regression Number of obs = 7,148,998
Absorbing 2 HDFE groups F( 5,7148887) = 39389.47
Prob > F = 0.0000
R-squared = 0.0330
Adj R-squared = 0.0330
Within R-sq. = 0.0260
Root MSE = 2096.0537
------------------------------------------------------------------------------
| Robust
avg_peer_c~t | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
iv_age | -31.59436 .2484534 -127.16 0.000 -32.08132 -31.1074
iv_fem | 411.207 8.263385 49.76 0.000 395.011 427.4029
iv_uni | 738.8013 4.091539 180.57 0.000 730.782 746.8205
pat_fem | -386.0751 2.196373 -175.78 0.000 -390.3799 -381.7703
pat_age | 10.79922 .0335185 322.19 0.000 10.73353 10.86492
_cons | 2902.447 12.48775 232.42 0.000 2877.971 2926.922
------------------------------------------------------------------------------
Absorbed degrees of freedom:
-----------------------------------------------------+
Absorbed FE | Categories - Redundant = Num. Coefs |
-------------+---------------------------------------|
ym | 90 0 90 |
age_int | 17 1 16 |
-----------------------------------------------------+
The text was updated successfully, but these errors were encountered:
I would like to absorb time FE in my regression as well as include a categorical variable among my explanatory variables (for age brackets).
When including age bracket FE as a regressor and absorbing time FE, I get the following message: "Warning: *variance matrix is nonsymmetric or highly singular" and SE are not estimated.
However, when running the exact same model while absorbing both time FE and age bracket FE I get no warning and all SE are estimated. Is it same to use these results?
PS: I am specifying robust standard errors in both estimations mentioned above. The same happens when I specify clustered standard errors for both estimations. This issue only does not happen when my standard errors are neither clustered, nor robust.
The text was updated successfully, but these errors were encountered: