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# Re: st: Re: Making Cohorts

 From Maarten buis <[email protected]> To [email protected] Subject Re: st: Re: Making Cohorts Date Fri, 29 Oct 2010 08:18:42 +0100 (BST)

```--- On Fri, 29/10/10, ajjee wrote:
> "Suppose that yit is a 0–1 variable indicating whether a
> household has access to a telephone or not, and that this
> indicator variable is a linear function of explanatory
> variables. We acknowledge this being an unusual assumption
> as in reality it is not possible for a 0–1 indicator to be a
> linear function of variables, since the linear function can
> take any value whereas the indicator is binary. However, the
> estimation procedure which we have adopted involves subsequent
> aggregation of the individual data. We removed yit to be
> linear in the explanatory variables in order for the
> aggregation to give a relation between the share of 1’s
> and the average of the explanatory variables."
>
> Thats why I wrote a linear function and asked for how to
> make a cohort data according to that.

The average of a dummy variable is a proportion, which is
still bounded between 0 and 1 (inclusive). So the averaging
does not solve the problem of boundedness of your dependent
variable.

If I understand you correctly, you go through this excercise
because you don't have real panel data. You can use -xtlogit-
or -xtmelogit- for your data. The higher level unit is than
country not individual, which seems to be what your technique
usuccessfuly tries to do as well.

Hope this helps,
Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany

http://www.maartenbuis.nl
--------------------------

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```