
Dear all Rusers,
I want to set up the following model with R:
log(y)_it=β*log(x)_it+δ_i+τ_t+(X')_it*γ+ε_it
I used the plmpackage because I have panel data.
FE < plm(log(revenue) ~ log(No of machines)+log(unemployed people)+log(population), data=R_Test, model="within", effect = "twoways")
(X')_it*γ should summarize the control variables “unemployed people” and “population.” δ_i should display the individual fixed effects and τ_t the time fixed effects.
I am not sure if my used formula best fits for the underlying model. Especially I have doubts that I took the control variables into account correctly.
Can you may help me ?:)
Thanks & regards,
Toby
