My paper proposal was just declined. Appearantly, I estimated the wrong model and have only 2 days to correct it.
I ran ols regression and included interaction with time variant and invariant variable. Then i seperately included the main variable as well as I expected this to drop out anyway. However, it did NOT drop out and I got coefficient estimates, all significant while I included firm fixed effects. Is OLS not the right model to use?
Is there any way I could fix this in 2 days? I was told to include the main variable as otherwise there would be omitted variable bias but not expected that it would not drop out. main independent variable is firms enganged in R&D development and firm fixed effect is dummy for each idnumber.
thanks a lot
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