Hi All,
I'm working on trying to get the results from the following regression which is a formula used in previous research;
Rt = β0 +β11(rt > 0)rt +β21(rt < 0)rt +t
where 1(·) is an indicator function to differentiate between positive and negative changes in rt
However I'm struggling because trying to use STATA's indicator function only supports dummy variables and that is not what I am trying to achieve as the rt does not only have a value of 1 or 0.
I have also split up the variable rt into 2 variables depending on if rt <0 or >0 but when I try to regress Rt on these 2 variables there are no overlapping observations so the regress function does not work.
Would you have any advice on how to run the regression above?
Many thanks,
Joris
Related Posts with Regression with Indicator Function splitting Independent Variable into 2 Subgroups
Firm Fixed Effects in ManovaHello, I have Panel Data and I want to run a multivariate Regression using Manova/Mvreg. Is it poss…
Use variables of only one child from among many childrenI have father's data id household member number father's age ..other father's variables parent-ch…
Help with Frequency TablesHello, I have a dataset with nations and studies. I'm wanting to create a frequency distribution wh…
Use variables of only one child from among many childrenI have father's data id household member number father's age ..other father's variables parent-ch…
suest and teffects togetherHello All, I am trying to use suest command after effects. use http://www.stata-press.com/data/r13/c…
Subscribe to:
Post Comments (Atom)
0 Response to Regression with Indicator Function splitting Independent Variable into 2 Subgroups
Post a Comment