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st: how to create pair-wise within the same data


From   Jianan Li <lexjl5@nottingham.ac.uk>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   st: how to create pair-wise within the same data
Date   Tue, 13 Mar 2012 11:43:48 +0000


Hi,

Now I have one panel time series data about grain price and weather data: 40 cities and 80 years.

I want to run this regression: P(i,t) – P(j,t) = B1*(w(i,t) – w(j,t)) + B2 *(Distance (i,j)) + e  (1)

i and j are two cities so that (i,j) is one pair-wise. P is price and W is weather. Distance(i,j) is the distance between i and j.

Question (1): how to construct the panel data from my original panel time series data for regression (1)?
Question (2): how to merge the distance variable into the new constructed panel data. I have the distance for each pair-wise.

Best wishes

Jianan Li


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