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# Re: st: plotting a regression function with time-dummies indicating structural breaks

 From Oliver Jones To statalist@hsphsun2.harvard.edu Subject Re: st: plotting a regression function with time-dummies indicating structural breaks Date Tue, 03 May 2011 13:33:59 +0200

```Hi Nick and Maarten,

people like you are the ones that make this list so very helpful!

Thanks a lot.
Oliver

Am 03.05.2011 12:16, schrieb Maarten buis:
```
```--- Oliver Jones<ojones@wiwi.uni-bielefeld.de>
```
```here is some example I just made up, that shows what I mean by "range
problem"
```
```
Notice that, as Nick already told you, -twoway function- cannot include
variables in the way you use it in your example. You must "create" your
dummies on the fly within your -twoway function- specification. So in
the example below I changed -d1- with -(x>1995)- and -d2- with
-(x>2005)-. For more on this trick see:
<http://www.stata.com/support/faqs/data/trueorfalse.html>

*--------------------------- begin example ---------------------
clear
set obs 20

gen int TIME = _n + 1990

* create dummies
gen byte d1 = 0
replace d1 = 1 if TIME>  1995
gen byte d2 = 0
replace d2 = 1 if TIME>  2005

tsset TIME

* set coefficients
scalar b_0 = 100
scalar b_1 = 2
scalar b_2 = 10000
scalar b_3 = -5
scalar b_4 = 20

* generate the time series
set seed 1
gen u = rnormal(0,2)
gen y = b_0 + b_1*TIME + b_2*d1 + b_3*d1*TIME + b_4*d2 + u

tw ///
(tsline y) ///
(function y = b_0 + b_1*x + b_2*(x>1995) + b_3*(x>1995)*x + b_4*(x>2005), ///
range(1991 2010)), ///
legend(order(1 "tsline" 2 "function"))
*-------------------------------- end example ----------------------------------

Hope this helps,
Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany

http://www.maartenbuis.nl
--------------------------

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```
```
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