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I am studying fund performance and trying to regress funds performance on the performance of previous funds by the same PE firm. The data I have is basically panel data, but it is highly unbalanced (some PE firms have only 2 fund in my sample, whilst others have up to 8 and the time intervals between funds are not consistent). I want to include year fixed effects and the standard deviation should be grouped on the firm level in my regressions.

This is the code I have used in STATA: reg FUND_R FUND_R-1 FUND_R-2 i.year, vce(cluster FIRMID) noconstant

The regression output looks solid, but I am still uncertain if this is the right way to do this? I considered using the xtreg with fe option to indicate fixed effects, but I'm new to STATA and don't know how the fact that my data is highly unbalanced affects that

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