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From |
Christopher Baum <kit.baum@bc.edu> |

To |
"statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu> |

Subject |
re:st: Is there a way to center factor variables |

Date |
Sat, 19 Nov 2011 12:46:50 -0500 |

<> If using the grunfeld standard data in Stata and running: use grunfeld reg invest kstock mvalue i.company i.time is there a way to make Stata use all members in company and constrain there coefficient to sum up to ZERO, and so the constant becomes the grand mean and not the base category. Things even look harder with time effect as well. Doesn't work for a second set of time dummies, but what you describe above is what -xtreg, fe- does automatically for the panel unit dummies. The constant reported is the grand mean of the u_i terms, and the (unreported) coefficients for the panel dummies are deviations from that grand mean. As described in section 7.1.1 of IMEUS (p. 164-165), you can create such a set of time dummies by subtracting the excluded one from each of the included ones, and using those (T-1) transformed dummies (which n in the xtreg, fe model. If you want the excluded dummy coefficient in point and interval form, -lincom- will do it for you (example on p. 165). Kit Kit Baum | Boston College Economics & DIW Berlin | http://ideas.repec.org/e/pba1.html An Introduction to Stata Programming | http://www.stata-press.com/books/isp.html An Introduction to Modern Econometrics Using Stata | http://www.stata-press.com/books/imeus.html * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

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