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st: Logit Model- Controlling for Differences Across Groups (Countries)


From   Michael Weinberg <[email protected]>
To   [email protected]
Subject   st: Logit Model- Controlling for Differences Across Groups (Countries)
Date   Mon, 2 Apr 2012 20:07:19 +0200

Dear Statalisters,

I am relatively new with STATA and I could use some help. I would be
very grateful for some advise with a few uncertainties.

I am running a binary-response logit model, using 2010 survey data
which includes roughly 2000 respondents from 5 different countries. I
have two questions:

-I want to control for variations across the 5 countries and capture
country-specific effects. What is the best way to do this? Should I
simply include country dummies for 4 of the 5 countries?

-I also have some 'macro' data (e.g. gdp per capita) which is unique
between the countries but of course does not vary within them. I
believe it's useful to include these variables. If I want to include
the country dummies as well, STATA throws out my macro data due to
collinearity. What is the best way to proceed?


Thank you so much in advance, and my apologies if these questions were
rudimentary or unclear.

Best,

Michael Weinberg

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