Shehzad,
Yes, this does what you want. Alternatively, you could temporarily
recode your dummy variable and use -predict-:
replace insurance = 1-insurance
predict counterfactual if e(sample)
replace insurance = 1-insurance
Hope this helps,
Eva
2008/8/22 Shehzad Ali <[email protected]>:
> Hi listers,
>
> I am trying to get counterfactual predictions after regress. Basically,
> people in my sample are either insured or uninsured. I want to predict how
> much insured would spend if they were uninsured (assuming their other
> characteristics remained the same) and vice versa for the uninsured. Can
> -adjust- help in this situation? Here is what I was trying but not sure if
> this is right:
>
> reg y $xvar insurance_dummy
>
> adjust insurance=1 if insurance==0, gen(counter_1)
> adjust insurance=0 if insurance==1, gen(counter_0)
>
> I would appreciate any help.
>
> Thank you,
>
> Shehzad
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