Hi all,

I have a dataset that looks like

Code:
* Example generated by -dataex-. To install: ssc install dataex
clear
input long hhid byte state float(MPCE VATrate year logMPCE pov_line)
220001101 24  1777.4 0 2004 7.482907 1
220001102 24  1480.2 0 2004 7.299932 1
220001103 24 1888.33 0 2004 7.543448 1
220001104 24  2727.5 0 2004 7.911141 1
220001105 24 1630.25 0 2004 7.396489 1
220001106 24  1931.5 0 2004 7.566052 1
220001201 24  623.12 0 2004 6.434739 1
220001202 24  965.86 0 2004 6.873019 1
220001203 24     891 0 2004 6.792345 1
220001204 24 1107.25 0 2004 7.009635 1
220011101 24    2600 0 2004 7.863267 1
220011102 24  1148.8 0 2004 7.046473 1
220011103 24 1845.75 0 2004 7.520641 1
220011104 24    2507 0 2004 7.826842 1
220011105 24  1905.5 0 2004   7.5525 1
220011106 24  2186.5 0 2004 7.690057 1
220011201 24    1184 0 2004 7.076654 1
220011202 24    1012 0 2004 6.919684 1
220011203 24  788.25 0 2004 6.669815 1
220011204 24 2379.17 0 2004 7.774507 1
220021201 24   612.7 0 2004 6.417875 1
220021202 24  616.75 0 2004 6.424464 1
220021203 24     748 0 2004 6.617403 1
220021204 24  613.62 0 2004 6.419376 1
220021205 24  571.62 0 2004 6.348475 1
220021301 24  340.66 0 2004 5.830885 0
220021302 24  287.86 0 2004 5.662474 0
220021303 24   301.4 0 2004 5.708438 0
220021304 24  282.59 0 2004 5.643997 0
220021305 24   417.8 0 2004 6.035003 0
220031101 24 2322.67 0 2004 7.750473 1
220031102 24  1479.8 0 2004 7.299662 1
220031201 24  678.94 0 2004 6.520533 1
220031202 24     964 0 2004 6.871091 1
220031203 24    1047 0 2004 6.953684 1
220031204 24 1518.84 0 2004 7.325702 1
220031301 24  656.83 0 2004 6.487425 1
220031302 24   510.3 0 2004 6.234999 0
220031303 24   258.5 0 2004 5.554896 0
220031304 24  398.33 0 2004 5.987281 0
220041101 24  1530.5 0 2004  7.33335 1
220041102 24 1568.67 0 2004 7.357984 1
220041201 24   902.6 0 2004 6.805279 1
220041202 24     604 0 2004 6.403574 1
220041203 24     630 0 2004  6.44572 1
220041204 24     993 0 2004 6.900731 1
220041301 24  472.75 0 2004 6.158566 0
220041302 24  432.58 0 2004 6.069767 0
220041303 24  289.32 0 2004 5.667533 0
220041304 24   466.4 0 2004 6.145044 0
220061101 24 3127.07 0 2004 8.047852 1
220061102 24    1929 0 2004 7.564757 1
220061103 24 2064.62 0 2004 7.632701 1
220061104 24 1846.75 0 2004 7.521183 1
220061105 24 3697.74 0 2004 8.215477 1
220061106 24 1904.62 0 2004 7.552038 1
220061201 24  1301.2 0 2004 7.171042 1
220061202 24  1361.4 0 2004 7.216269 1
220061203 24  1114.7 0 2004 7.016341 1
220061204 24 1216.58 0 2004 7.103799 1
220071101 24 1535.66 0 2004 7.336716 1
220071102 24  2542.7 0 2004 7.840982 1
220071103 24 3760.15 0 2004 8.232214 1
220071104 24 1709.05 0 2004 7.443693 1
220071201 24  867.38 0 2004 6.765477 1
220071202 24  483.77 0 2004  6.18161 0
220071203 24  939.25 0 2004 6.845082 1
220071204 24  783.98 0 2004 6.664383 1
220071301 24  543.12 0 2004  6.29733 1
220071302 24  525.92 0 2004 6.265149 0
220081101 24 2131.75 0 2004 7.664699 1
220081201 24 1297.41 0 2004 7.168125 1
220081202 24 1603.38 0 2004 7.379869 1
220081301 24 1172.22 0 2004 7.066655 1
220081302 24  457.56 0 2004 6.125908 0
220082101 24  2468.2 0 2004 7.811244 1
220082102 24    1817 0 2004 7.504942 1
220082103 24    1846 0 2004 7.520776 1
220082201 24 1641.81 0 2004 7.403554 1
220082202 24  1122.2 0 2004 7.023046 1
220091101 24    1530 0 2004 7.333023 1
220091102 24    1393 0 2004 7.239215 1
220091201 24    1571 0 2004 7.359468 1
220091202 24  870.67 0 2004 6.769263 1
220091203 24  785.83 0 2004  6.66674 1
220091204 24  1330.4 0 2004 7.193235 1
220091301 24  540.25 0 2004 6.292032 0
220091302 24 1063.29 0 2004 6.969123 1
220091303 24  816.33 0 2004 6.704819 1
220091304 24  621.86 0 2004 6.432715 1
220101101 24 1687.73 0 2004 7.431139 1
220101102 24  2298.4 0 2004 7.739968 1
220101103 24 3578.72 0 2004  8.18276 1
220101201 24  973.62 0 2004 6.881021 1
220101202 24 1184.15 0 2004  7.07678 1
220102101 24  4284.9 0 2004 8.362852 1
220102102 24 1711.73 0 2004  7.44526 1
220102103 24 1927.05 0 2004 7.563745 1
220102201 24 1110.88 0 2004 7.012908 1
220102202 24 1119.67 0 2004 7.020789 1
end
Similarly there is data for 2011 right below this in my dataset. I did not post it because of limitations of space. The VAT rate for 2004 is 0 for all the observations and some positive value for 2011. MPCE denotes the monthly per capita consumption expenditure of a household in a state for a particular year (2004 and 2011). I have been advised to perform pooled cross section regression analysis on this. So, I have two questions:

1) Is this how a pooled cross section data looks like or do I have to do something to convert this dataset into one?
2) For the first regression, I want to find out the effect of VAT rate on consumption in 2011. I want to use the MPCE of year 2004 as a control in the regression with other controls of course. What is the way to go about it? Should I create another new variable or there is some command to do it otherwise?

Thanks and regards,
Meghna