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st: taking averages of panel data

From   [email protected]
To   [email protected]
Subject   st: taking averages of panel data
Date   Fri, 27 Feb 2004 16:01:31 -0500


I have two questions.

(1) I have a panel data covering 1994-2001, that has both firm-level and
country-level data from multiple countries.  I want to run cross-sectional
regressions using averages across certain years.  Can I just take averages
of certain years for some variables and regress them on averages of another
variable? Can I regress them on observations of another variable from only
a particular year?

Example:    regress per capita income in 1999 on average inflation from
1995-1999 and on average bank margin from 1995-1999 OR
            regress average per capita income from 1995-1999 on avg.
inflation 1995-1999 and on avg. bank margin 1995-1999

Can I do this in Stata, or do I have to take averages in some other program
and then convert it into a Stata dataset? What would be the easiest way of
doing this?

(2) I have two datasets: one is the panel above.  The other has
cross-country data from 1999 only.  What I want to do is run
cross-sectional regressions using data from both datasets.  I want to take
the averages of some variables over certain years (e.g. 1995-1999) from the
panel data and regress them on the 1999 data from the other dataset.  Do I
need to merge the datasets? How do I merge a panel with a cross-sectional

I am new to the list, and I never did panel data analysis in Stata, so I
apologize in advance if the answer to this was easy to find elsewhere.  I
would appreciate your help.

Mehmet Genc

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