Monday I started a topic on estimating OLS with fixed effects using SPSS.

That turns out to be impossible. So now I want to do it with Stata.

I need to estimate the following revenue equation:

y =ai + x1 + x2 + ... + x6 + time dummies (ai stands for bank-specific effects)

The idea behind this equation is that by summing the values of the coefficients

of x1, x2, and x3 I can say something about the competitive state of a banking market of a certain country (in literature: H-statistic).

Fixed effects are introduced to capture bank-specific effects (only varies between banks, not years).

The dataset contains an unbalanced panel of bank observations over 14 years and of 15 countries.

For every country I have to run a separate regression.

Would these be good Stata commands:

xtset bankid year (not sure about this one)

xtreg y x1 x2 x3 x4 x5 x6 i.year, fe

or (resulting in the same?)

regress y x1 x2 x3 x4 x5 x6 i.bankid i.year

(bankid stands for the identification number of a bank, it changes between banks, but not years)

Ps how can I only include bank observations when country value is for example Belgium

(In SPSS this is called 'Selection variable')? Or should I exclude other countries beforehand?

Thanks in advance!