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st: Diff in Diff using xtreg with respect to a base year


From   "sebastian.blesse" <sebastianblesse2404@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Diff in Diff using xtreg with respect to a base year
Date   Fri, 26 Apr 2013 06:00:20 -0700 (PDT)

Hello Statlistusers, 

my problem is the following: I have a panel (from 1999 to 2005, observations
are 410) over municipal expenditure data and several controls and i want to
run a difference in difference estimation on the expenditure impacts of a
reform taken place between 2000 and 2003. The only year available before the
reform was 1999 and i want to compare this to the after reform years 2004
and 2005. Hence, for Diff in Diff on total expenditures (totexp_pc) i want
to compare the values from 2000 with those of 1999 as the reference year. I
just dont know how to formulate this in STATA.

Here is a list of my variables with description for better understanding: 

 id - Code of municipality 
year - year 
amalg - participation variable 
 pop 
 area 
popdens 
 unemplrate 
 gdp_pc 
 capitalregion 
 staffexp_pc 
 interestexp_pc 
 adminexp_pc 
 totexp_pc 
 grants_pc 
 budgetsurplus_pc 
 fiscalpressure_pc 
 totrevenues_pc 
 currentexp_pc 
 popsquare 
usearea_pc 
 births_pthc 
immigration_pthc 
 young_pthc 
 old_pthc 
netimmigration_pthc 

Kind regards, 

Sebastian Blesse



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