Good afternoon to you all
My name is David and am new to Stata. My problem is that i want to use Stata to estimate threshold level but i don't how
go about it. I try also to generate new variable from my data but it seems am not doing it right.
Please if could permit me i would like to add my data and model for you to advice me on what to do.
id year Volume Value Market Cap Inflation
1 2013 531.81 45,739,551 35408010 11.7
1 2014 553.74 79,472,245 71,419,962.81 15.5
1 2015 548.26 23,129,454 21,257,815.37 17.1
1 2016 411.2 11,835,752 10,946,399.90 17.5
1 2017 592.12 190,667,899 254,723,222.30 12.4
2 2013 1645.01 14658999 65129460 11.7
2 2014 2,228.54 6,776,134 46,640,857.62 15.5
2 2015 2,055.53 2 ,186,876 16,734,981.26 17.1
2 2016 1876.66 1,308,656 8,924,413.42 17.5
2 2017 2,228.54 3,396,754 24,642,645.00 12.4
3 2013 3032.97 20780811 3701180 11.7
3 2014 5,967.91 22,842,475 6,054,169.85 15.5
3 2015 6498.29 13,623,044 4,123,181.46 17.1
3 2016 2406.78 13,206,588 2,622,574.05 17.5
3 2017 3,850.84 15,227,384 2,055,929.71 12.4
4 2013 1285.25 11946366 56389940 11.7
4 2014 1,404.50 12,009,864 58,515,182.40 15.5
4 2015 1004.35 9 ,634,831 41,723,786.82 17.1
4 2016 943.4 8097974 28,571,555.65 17.5
4 2017 1,338.25 8,634,777 41,338,960.34 12.4


Yit =µi +β′1×it h (qit < γ1) +𝛽′2×it h (γ1<qit ≤ γ2) +𝛽′3×it h (qit ≥ γ2) + 𝜀it