Hi.
I am attempting to perform a regression on a combined micro (individual level data from survey --the European Social Survey in particular -- i.e. categorical data on human values scale with range from 1 to 6) and macroeconomics (country-level data i.e. GDP) dataset. The ESS has 9 waves so far and I am planning to use all of them, thus making it a panel data.
I would like to ask for help on the following issues:
1.) The dependent variable is a country-level data while my main independent variable is a country-level data which also depends on a variable which is on the individual level. Therefore the country-level independent variable serves as a "mediator"
2.) the individual level variable mentioned above is supposed to be somewhat like an index wherein several individual-level variables are combined.
3.) the hypothesis is therefore is somewhat like: individuals determine a macro variable which in turn affects another macro variable.
I would like to know if this is possible to perform in Stata? If so, how could it be done? I have read some about the "multi-level" models but I am not really familiar with it or if what I have in mind is even similar. Please do correct me if I'm wrong. Will really appreciate your help. Apologies for not posting a code or specific variables yet as I have not arrived to that point yet. I am still exploring the possibility of such method.
Thanks in advance.
Cris
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