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st: xi regress: noconstant option


From   "Yvonne Capstick" <yvonnecapstick@hotmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: xi regress: noconstant option
Date   Mon, 14 Feb 2005 10:28:31 -0500

Hi,

I have two categories: "return" and "country", where return is "numeric" and "country" is a three letter code corresponding to the country. I know that I can use the "xi" function to create dummy variables and run the regressions all in one step, i.e.

xi : regress return country

To avoid the dummy variable trap, it automatically omits the first group of "country". I know that I can use the "char" function to specify omitting another group, e.g.

char country[omit] "ita"

would omit the group "ita".

However, I haven't found a way to omit no groups - i.e. include all the dummy variables, and avoid the dummy variable trap by specifying "noconstant" in the regression. If I try:

xi: regress return country, noconstant

it will omit the constant but still omit the first group of "country". Any advice would be appreciated.

Thanks,
Yvonne

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