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From |
Javier Bacarreza <superpiti@yahoo.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: re: WLS and dummies |

Date |
Sun, 17 Apr 2005 15:40:08 -0700 (PDT) |

Thanks for the answer Kit and all, I tried to use the command lincom in the following way: The data set is (a sample): var1 var2 var3 var4 var5 var6 var7 .576 1 0 0 1 0 0 .354 0 0 1 0 1 0 .542 1 0 0 0 0 1 .6354 0 1 0 1 0 0 .875 1 0 0 0 1 0 .524 0 1 0 0 0 1 .324 0 0 1 0 1 0 .643 1 0 0 1 0 0 .523 0 1 0 0 0 1 .089 0 0 1 0 1 0 and I regress : reg var1 var2 var3 var4 var5 var6 var7 and it drops var4 and var7 due multicollinearity. And I use lincom: lincom var4 But still I can not get the estimation of this parameter and the std error since it says dropped. Do you have any clue how can I solve this?.. Thanks in advance, Javier --- Kit Baum <baum@bc.edu> wrote: > Javier wrote > > I would like to ask a question that I had before but > I > couldnt solve. The problem I have is the following: > Im > aplliying shif-share method in a regression of data > panel. My dependent variable is the growth in > employment and I have as independent variables > dummies > for industries, dummies for years and for regions. > The > problem arises because I loose one region, one year > and one industrie because of the dummies use. I dont > want to loose this since they are useful for the > analysis I'm doing. Does anyone have an idea how to > do > this?. > > You can always include ONE complete (mutually > exclusive and exhaustive) > set of dummies in a regression by excluding the > constant term. You gain > nothing by doing so; the coefficients are just > measured vs. zero rather > than vs. the excluded class. But you cannot include > TWO or more > complete sets of dummies in a regression, > irregardless of the treatment > of the constant term, since each set of dummies sums > to an iota vector > of length N, and you can't have two of those in your > regression. But > then you don't need to; you can always calculate all > the coefficients, > in point and interval form, from the (G-1) dummies' > coefficients. The > lincom command is useful here. > > Kit Baum, Boston College Economics > http://ideas.repec.org/e/pba1.html > > * > * For searches and help try: > * > http://www.stata.com/support/faqs/res/findit.html > * http://www.stata.com/support/statalist/faq > * http://www.ats.ucla.edu/stat/stata/ > __________________________________ Do you Yahoo!? Plan great trips with Yahoo! Travel: Now over 17,000 guides! http://travel.yahoo.com/p-travelguide * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

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