Dear Experts,
My objective is to get two coefficients with corresponding p-values before and after a reform took place. My data starts in 2005 and ends in 2015 for 125 firms. Therefore, it is a panel data but unbalanced. My dependent variable is RiskLevel (continuous) and IVs are income (continuous) and size (dummy 0,1). If we want to design a fixed effect model for the full sample, it could be:
Code:
xtreg RiskLevel income size, fe
However, a reform took place in 2012. And, I want to compare between the pre-reform (2005 to 2010) and post-reform era (2011 to rest). Therefore, I generated a dummy variable, Reform that equals 0 indicating before reform and 1 equals after. Now, as I want to compare between two eras for the IVs, can I interact single hashtag like the following:
Code:
xtreg RiskLevel i.Reform#c.income i.Reform#i.size, fe
After using single hashtag, I get two values (coefficients, p-value etc.) for pre- and post-reform. My question is, whether I can use '#' in my equation, or should I use '##' instead. Does a single hashtag depict before-after scenario in this instance for comparison?
I also tried using the equation like the following with ## instead:
Code:
xtreg RiskLevel i.Reform##c.income i.Reform##i.size, fe
However, it returns 3 values for each of the IVs. For example, in the case of income, 1 value for Reform and 1 value for income (for full sample) and another one is marginal effect like (1.Reform#income). As my initial objective is to get values (Coefficients, standard errors, t-values and p-values) for both pre- and post-reform (not the marginal effect only), what should I do now?
Thanks in advance.
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