Dear Statalist
I saw many researchers decomposing the variables into positive and negative values. For instance, if we are examining the impact of growth in sales on trade credit, before the decomposing, the results show that the coefficient of the growth is negative, so to have additional information about the effect of the variable, they decompose the growth to positive growth and negative growth, so the former takes positive values of sales growth, and 0 otherwise, and the latter takes negative values, and 0 otherwise, and this can be done by the following code:
generate growth_positive =gorwth*(growth>0)
generate growth_negative= -growth*(growth<0)
So, my question why they decompose it, is it because the growth coefficient before the decomposition was negative, if yes, shall we decompose the growth if we get a positive coefficient?
Devoting some of your valuable time to answering my question is highly appreciated.
Looking forward to hearing from you.
Many thanks in advance.
Related Posts with Directional symmetry
Looping running sum and total for changing range within grouped variables.Hi everyone, I'm relatively new to Stata so please excuse if the explanation of my problem sounds a…
saving two files using foreachDear statalist, I tried to load two files, make some changes, and save them in one go. However I ju…
Total sum of squares when using reg and noconstant In the artificial data set below I estimated depvar = beta0 + beta1*year and depvar = beta1*year. U…
Year and State Fixed EffectsHello guys, Please, I need help. I have questions about a year and state fixed effects. I have pane…
Plotting residuls for first and second stage of "SLSDear Stata experts, i am using 2sls to estimate the impact of water quality on health with state 14…
Subscribe to:
Post Comments (Atom)
0 Response to Directional symmetry
Post a Comment