Hello everyone, I have a question. I am running a panel regression for 29 cities and a period of 7 years. My dependent variable is CGI which measures the level of income segregation strictly having a continuous positive value from 0 to 1. However, after running the regression, I found the constant to be a positive value of 1.85 (greater than the maximum value of CGI), while the variable of over65 (fraction of population > 64 years old) to have a coefficient of -1.27, which is lower than the minimum value of CGI. Should there be specific treatments on dependent variables with such characteristics? I know the latest version of stata have the option of beta and fractional regression but I do not have access to it and I think logistic regression option seems implausible since the dependent variable have a continuous value from 0 to 1. Below I attached the result of the regression,
Thank you!
Code:
xtreg cgi gini emp1 lowskill1 logpop logmed own hs25 sarjana25 eighteen over65 i.year, fe robust
Fixed-effects (within) regression Number of obs = 203
Group variable: id Number of groups = 29
R-sq: within = 0.5303 Obs per group: min = 7
between = 0.1904 avg = 7.0
overall = 0.0000 max = 7
F(16,28) = 32.74
corr(u_i, Xb) = -0.6414 Prob > F = 0.0000
(Std. Err. adjusted for 29 clusters in id)
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| Robust
cgi | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
gini | .2098422 .1119539 1.87 0.071 -.0194849 .4391694
emp1 | -.0026784 .0016391 -1.63 0.113 -.006036 .0006792
lowskill1 | .0852168 .0709025 1.20 0.239 -.0600204 .230454
logpop | -.0595715 .0732945 -0.81 0.423 -.2097085 .0905656
logmed | -.0617125 .0605833 -1.02 0.317 -.1858117 .0623867
own | .1888378 .0879009 2.15 0.040 .008781 .3688946
hs25 | -.0774792 .2259464 -0.34 0.734 -.5403094 .385351
sarjana25 | .5969337 .3611071 1.65 0.109 -.1427607 1.336628
eighteen | .0292786 .4995487 0.06 0.954 -.9940006 1.052558
over65 | -1.2718 .7602054 -1.67 0.105 -2.829011 .2854097
|
year |
2006 | .0143375 .0154605 0.93 0.362 -.0173319 .046007
2007 | -.0090962 .0205345 -0.44 0.661 -.0511593 .0329668
2008 | -.025067 .0349562 -0.72 0.479 -.0966716 .0465375
2009 | .0210048 .0308709 0.68 0.502 -.0422314 .0842409
2010 | .0274367 .0366644 0.75 0.461 -.0476669 .1025404
2011 | .0174045 .039606 0.44 0.664 -.0637247 .0985337
|
_cons | 1.849855 1.663708 1.11 0.276 -1.558097 5.257806
-------------+----------------------------------------------------------------
sigma_u | .09637064
sigma_e | .03855145
rho | .86204928 (fraction of variance due to u_i)
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