Including counties as explanatory variables
Posted: 06 Nov 2024, 09:24
Dear prof Hess and Palma,
I am conducting an analysis of solar panel installation in Sweden, and I wish to add the Swedish counties (there are 21 of them) into the analysis, since it might have some heterogeneity between them. Thus, I would like so assess the impact of county on the choice and utility.
Do I need to add all counties as dummies or is there some simpler and more compact way to do this? Since there are so many counties, I am afraid that the amount of parameters will be too many.
Best regards,
Gabrielle
I am conducting an analysis of solar panel installation in Sweden, and I wish to add the Swedish counties (there are 21 of them) into the analysis, since it might have some heterogeneity between them. Thus, I would like so assess the impact of county on the choice and utility.
Do I need to add all counties as dummies or is there some simpler and more compact way to do this? Since there are so many counties, I am afraid that the amount of parameters will be too many.
Best regards,
Gabrielle