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st: Binary variable after first-differencing


From   "Amess Kevin" <[email protected]>
To   <[email protected]>
Subject   st: Binary variable after first-differencing
Date   Mon, 5 Mar 2007 20:23:46 -0000

Dear All,

I would very much appreciate help on the following problem. My panel
data contain both continuous and binary variables. I want to estimate a
model in first differences but would like to incorporate a binary
variable. So that the binary variable is not first-differenced out of
the equation I want to create difdummy (see below). Basically, I do not
know how to create difdummy. Below illustrates my data:

Firm	year	dummy		difdummy
1	1993	0		0
1	1994	0		0
1	1995	1		1
1	1996	1		2
1	1997	0		2
1	1998	0		2
2	1993	1		1
2	1994	1		2
2	1995	1		3
2	1996	0		3
2	1997	0		3
2	1998	0		3
3	1993	0		0
3	1994	0		0
3	1995	0		0
3	1996	0		0
3	1997	1		1
3	1998	1		2

Regards,
Kevin

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