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Re: st: Dependent ordered variable
From
Tirthankar Chakravarty <[email protected]>
To
[email protected]
Subject
Re: st: Dependent ordered variable
Date
Mon, 28 May 2012 01:24:22 -0700
You don't say which version of Stata you are using. Most of what -xi-
and -xi3- (ATS UCLA) could do have been superseded in Stata 12.
You should explicitly declare your credit rating variable as a factor
variable, as in your (2) or (3) - the effects coding doesn't really
matter and is a matter of interpretability - which is the main
difference between your (2) and (3). In Stata 12, the first regression
below gives you the indicator coding from your (2), the following line
gives you the backward adjacent coding from your (3):
*********************************
sysuse auto, clear
reg mpg i.rep78
contrast a.rep78
xi: reg mpg i.rep78 // (2)
xi3: reg mpg b.rep78 // (3)
*********************************
In general, the advice is that if you are using Stata 12, then look
into -fvvarlist-, -contrast-, -pwcompare-, and -margins- for very
general ways of dealing with factor/categorical regressors.
T
On Mon, May 28, 2012 at 12:52 AM, Tobias Bertschinger
<[email protected]> wrote:
> Hi
> I'm currently analyzing data which have an approximately normal distributed dependent variable Y (dependent_var) and I also have a couple of dependent variables.
> I want to test the influence of credit ratings (ordered, e.g. AAA, AA+, AA, AA-...) as the main independent variable and a couple of control variables.
>
> What kind of test should i use?
> Are there other tests than:
> (1) include the credit rating as a dummy variable
> (2) use xi: regress dependent_var i.credit_rating control_vars
> (3) use xi3: regress dependent_var b.credit_rating control_vars
> ?
>
> Thanks for your help!
> *
> * 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/
--
Tirthankar Chakravarty
[email protected]
[email protected]
*
* 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/