Hello
I am trying to test the effect of Democracy on GDP. So my panel has country specific information and its democracy rating from Freedom Index (Gastil Index). In certain years some countries transition out of democracy and then back again, so those years need to be discounted. Another issue is the Index changed slightly in 2003. Like the table below: So if countries before 2003 has a rating above 5.5 they will be discounted and 2003 and After countries above 5.0 will be discounted.
Before 2003 2003 and After
Range Democracy Level Range Democracy Level
1.0 – 2.0 High-Level Democracy 1.0 – 2.0 High-Level Democracy
2.5 - 4.0 Mid-Level Democracy 2.5 – 3.5 Mid-Level Democracy
4.5 – 5.5 Low-Level Democracy 4.0 – 5.0 Low-Level Democracy
What command should I use for this situation..
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