I don't have much experience with panel data so I apologize in advance if this sounds ridiculous.
I am currently writing a thesis investigating the impact of political risk on managerial risk-taking.
I control for various variables that are known to affect managerial risk-taking and include dummy variables for industry, country, and year (these are the fixed effects).
What exact unobserved variables are controlled for in a model with multiple fixed effects?
My understanding is that the coefficient estimates show the average effect the explanatory variable has on the dependent variable across groups. How are those groups exactly defined, when industry, country, and year fixed effects are included?
Would the group be industry-country-year such as retail-UK-2019?