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Re: st: Binary Variables

From   Neil Shephard <>
Subject   Re: st: Binary Variables
Date   Wed, 2 Jun 2010 14:14:08 +0000

On Wed, Jun 2, 2010 at 2:03 PM, Natalie Trapp <> wrote:
> Hi Neil,
> I use Stata 11 and do a normal OLS estimation (with the "reg" command):
> y = dependent variable (agricultural inputs)
> x = independent variables (climate variables, crops, etc.) and dummy
> variables that represent the 150 regions within the EU

This is _not_ showing what you are typing, if you are using -regress-
then I would expect you to have included something along the lines

regress agricultural_inputs temperature crops i.region

> The coefficients of the dependent variable within each region are very
> divers and significant for about 120 regions.
> My Problem is for instance, when "Schleswig Holstein" is my reference
> group, Stata adittionally omits Valle d'Aoste, Vlaanderen and Ile de France.

Could it be that there is missing data within your data structure such
that most observations for these regions are omitted and the few that
remain all have the same value of "agricultural_inputs".

> Still, I don't quite understand why Stata does it, because the regions
> (Germany, France, Netherlands) do not seem to be similar to me.

"Seems" is a vague term and is based on your subjective interpretation
of what you are expecting, and it need not be because you have the
data, you can look at it.  Check the patterns of missing data that
exist and how these pan out within the regions, in particular those
that are being omitted.

Stata will be omitting them for a reason (and it will often indicate
why a particular category has been dropped).

So again, pasting the _exact_ command you are entering and the
resulting output would be very informative to other list members.  You
can copy and paste from the Results window directly into an email.

"... no scientific worker has a fixed level of significance at which
from year to year, and in all circumstances, he rejects hypotheses; he
rather gives his mind to each particular case in the light of his
evidence and his ideas." - Sir Ronald A. Fisher (1956)

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