Stata The Stata listserver
[Date Prev][Date Next][Thread Prev][Thread Next][Date index][Thread index]

st: regression methodology


From   Dirk Nachbar <Dirk.Nachbar@dwp.gsi.gov.uk>
To   statalist <statalist@hsphsun2.harvard.edu>
Subject   st: regression methodology
Date   21 Oct 2005 14:40:28 +0100

Dear all

there are two ways to deal with heterogeneity in your data set

1. you include a dummy for a sub-group

2. you run several regressions for each sub-group

Now I was thinking when do we choose one or the other . It seems that if we do not want the same explanatory variables for each sub-group we should use approach 2, but then maybe our sample becomes too small. Approach 1 seems more neat and is quicker.

What do you think? Which approach is better and how should we determine when to use which approach?

Dirk Nachbar

Assistant Economist

Pensim2

Department for Work and Pensions

Level 4, The Adelphi

1-11 John Adam St

WC2N 6HT London

020 796 28531 ********************************************************************** This document is strictly confidential and is intended only for use by the addressee. If you are not the intended recipient, any disclosure, copying, distribution or other action taken in reliance of the information contained in this e-mail is strictly prohibited. Any views expressed by the sender of this message are not necessarily those of the Department for Work and Pensions. If you have received this transmission in error, please use the reply function to tell us and then permanently delete what you have received. Please note: Incoming and outgoing e-mail messages are routinely monitored for compliance with our policy on the use of electronic communications. **********************************************************************
The original of this email was scanned for viruses by the Government Secure Intranet (GSi) virus scanning service supplied exclusively by Energis in partnership with MessageLabs.

On leaving the GSi this email was certified virus-free




© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index