I have a short panel dataset that I want to analyze. It contains panel data of multiple individuals. Each individual is assigned to 1 of 4 treatment groups and I am interested in the effect of these treatments. Basically I want to run this regression:
Y = X + Z + Condition (X, Z vary over time; Condition is a dummy variable and time-constant)
I can't use the fixed effects "within" model, because the variable I'm interested in will drop out - since it is time-invariant.
- reformulated: I think the proper way to analyze this dataset regarding my variable of interest (Condition) is random effects.
However, I am not sure - is there a better way?