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st: Categorical variable

From   "ALICE DOBSON" <[email protected]>
To   [email protected]
Subject   st: Categorical variable
Date   Fri, 22 Jul 2005 08:34:47 -0400

Dear All,
I use stata 9 and have a very simple question.

I have a categorical independent variable [Level of Investment] in an unbalanced panel of firms. All firms fall within the three categories: Low, Medium, and High investments. I code them as 1 or 0 for each category, which are exclusive. If a firm has low level of investment then it canot have medium or high.

My question is how do I explain to Stata that this is a categorical variable and which of the three should be the base dummy?


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