Interpreting the coefficients on fixed effects will always be based on what?
A) If the regression was run using STATA or Excel.
B) The sign of the coefficient on the instrumental variable in the first stage regression.
C) The base group omitted from the regression.
D) The standard error on the treatment variable.

Question

Quizplus · Accepted Answer

The coefficients on fixed effects reflect the difference between each of the treatment groups and the base group. Therefore, interpreting these coefficients correctly requires knowledge of which group was chosen as the base group and what characteristics were held constant across groups.

Interpreting the Coefficients on Fixed Effects Will Always Be Based