
From  "Sergiy Radyakin" <Radyakin@aoek.unihannover.de> 
To  <statalist@hsphsun2.harvard.edu> 
Subject  st: Re: Binary variable after firstdifferencing 
Date  Mon, 5 Mar 2007 21:47:57 +0100 
Dear All,
I would very much appreciate help on the following problem. My panel
data contain both continuous and binary variables. I want to estimate a
model in first differences but would like to incorporate a binary
variable. So that the binary variable is not firstdifferenced out of
the equation I want to create difdummy (see below). Basically, I do not
know how to create difdummy. Below illustrates my data:
Firm year dummy difdummy
1 1993 0 0
1 1994 0 0
1 1995 1 1
1 1996 1 2
1 1997 0 2
1 1998 0 2
2 1993 1 1
2 1994 1 2
2 1995 1 3
2 1996 0 3
2 1997 0 3
2 1998 0 3
3 1993 0 0
3 1994 0 0
3 1995 0 0
3 1996 0 0
3 1997 1 1
3 1998 1 2
Regards,
Kevin
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